TransUnion’s report found that origination growth in the subprime risk tier grew at a significant rate across auto, personal loans and credit cards following declines in 2017. Subprime originations in the personal loan category grew 28% between Q2 2017 and Q2 2018 (originations are viewed one quarter in arrears to account for reporting lag), compared to a yearly decline of 7.1% over the prior year. Auto showcased a similar trend, as independent lenders began issuing new loans to subprime consumers following industry pullback in 2016 and 2017. Subprime auto originations increased 7.3% year-over-year, after falling 7.8% year-over-year in Q2 2017.

“In 2016, the market experienced a pullback as lenders slowed or stalled subprime originations,” said Matt Komos, vice president of financial services and research and consulting at TransUnion. “The pendulum is starting to swing back, as we see lenders once again extend credit to subprime consumers. In this environment, lenders are continuing to focus on risk tolerance and are taking this into consideration as some of them are shortening loan terms, managing interest rates and lowering loan amounts or credit lines.”

Credit cards, by far the most popular credit product, also reversed a declining originations trend with year-over-year growth observed for the first time since 2016. Growth of 3.6% was seen by subprime and positive growth was observed in the prime plus and super prime risk tiers. The current industry-wide treatment of subprime appears to be one in which lenders are providing more access to credit cards, though with smaller credit limits.

While total mortgage originations have continued to flatten, the subprime risk tier saw modest origination growth of 3.4% year-over-year, representing the largest volume of subprime loans originated in the second quarter post-recession. Mortgage delinquencies have consistently dropped every quarter since Q4 2009. In the subprime risk tier this improvement was particularly noticeable, dropping to 18.62% from 20.44% over the same period last year.

“As we look across the consumer wallet, we find several noteworthy trends. As lenders continue to adjust strategies and monitor for risk, delinquencies have flattened and remained low. Conversely, origination growth is taking place most noticeably in subprime, but is also taking place across most risk tiers. Overall, these insights point to a healthy market and should these trends continue, we can expect lenders to continue extending credit,” added Komos.

At the end of the third quarter, personal loan balances reached a record-high $132.4 billion, an increase of 18.0% from the previous year, and $20 billion more than the end of Q3 2017. Personal loan originations grew at an annual rate of over 20% for the third consecutive quarter, growing 23% year-over-year in the last quarter. Subprime originations expanded at the fastest rate, increasing over 28% from the prior year. At the same time, the average new loan amount for subprime consumers continues to decrease, with more lenders offering smaller subprime installment loans as alternatives to payday loans. The 60+ day delinquency rate per borrower remains relatively low at 3.41%. Overall, this represents an increase of 28 bps over Q3 2017, 12 bps lower than Q3 2016 and 10 bps lower than Q3 2015.

Instant Analysis

“Personal loans continue to be one of the strongest sectors in consumer financial services. We are seeing two drivers of growth in personal lending. First, the favorable regulatory environment has fueled growth in non-prime lending, with FinTechs leading the way. Second, banks and credit unions continue to compete in the personal loan market and are offering larger loans and longer terms to prime and better consumers, whose overall balances are growing the quickest. As we look forward into 2019, low unemployment and rising wages are likely to support continued strength in unsecured lending.”

Jason Laky, senior vice president and consumer lending business leader at TransUnion

Q3 2018 Unsecured Personal Loan Trends

Personal Loan Metric

Q3 2018

Q3 2017

Q3 2016

Q3 2015

Total Balances

$132 billion

$112 billion

$100 billion

$83 billion

Number of Unsecured Personal Loans

20.3 million

17.5 million

16.2 million

14.3 million

Borrower-Level Delinquency Rate (60+ DPD)

3.41%

3.13%

3.53%

3.51%

Average Debt Per Borrower

$8,338

$8,017

$7,755

$7,258

Prior Quarter Originations*

4.5 million

3.6 million

3.6 million

3.6 million

Average Balance of New Unsecured Personal Loans*

$6,253

$6,140

$5,475

$5,520

*Note: Originations are viewed one quarter in arrears to account for reporting lag.

Q3 2018 Unsecured Personal Loan Performance by Age

Generation

60+ DPD

Annual Pct. Change

Average Loan Balances Per Consumer

Annual Pct. Change

Gen Z (1995 – present)

5.96%

+5.3%

$3,340

+10.1%

Millennials (1980-1994)

4.45%

+5.2%

$7,374

+7.4%

Gen X (1965-1979)

3.31%

+7.1%

$9,722

+5.1%

Baby Boomers (1946-1964)

2.46%

+9.3%

$8,530

+2.9%

Silent (Until 1945)

2.48%

+11.7%

$6,941

+0.5%

Auto Loan Delinquencies Decline Even with Rise of Subprime Borrowers

Q3 2018 IIR Auto Loan Summary

After eight straight quarters of credit tightening, delinquencies showed improvement alongside an uptick in originations. The overall consumer-level delinquency rate declined, with subprime showing an improvement of 15 basis points from 6.97% in Q3 2017, to 6.82% in Q3 2018. With this stabilization, auto lenders are once again opening up to subprime borrowers. Subprime originations increased 7.3% year-over-year, after falling 7.8% year-over-year in Q2 2017. Overall, originations increased 3.1% year-over-year in Q2 2018, the second consecutive quarter of growth.

Instant Analysis

“The auto finance market continues to show signs of underlying health – delinquencies have flattened and it appears that lenders have responded by making credit more available to subprime borrowers again. This has helped drive modest year-over-year origination growth the past two quarters, following declining originations the previous six quarters. Delinquencies are flattening overall but there are headwinds to be wary of including increasing interest rates, rising oil prices, existing steel and aluminum tariffs increasing vehicle input costs as well as the threat of additional tariffs.”

Brian Landau, senior vice president and automotive business leader at TransUnion

Q3 2018 Auto Loan Trends

Auto Lending Metric

Q3 2018

Q3 2017

Q3 2016

Q3 2015

Number of Auto Loans

81.9 million

78.6 million

74.8 million

69.8 million

Borrower-Level Delinquency Rate (60+ DPD)

1.36%

1.40%

1.33%

1.19%

Average Debt Per Borrower

$18,835

$18,567

$18,361

$17,946

Prior Quarter Originations*

7.3 million

7.1 million

7.3 million

7.2 million

Average Balance

of New Auto Loans*

$20,998

$20,653

$20,436

$20,097

*Note: Originations are viewed one quarter in arrears to account for reporting lag.

Q3 2018 Auto Loan Performance by Age Group

Generation

60+ DPD

Annual Pct. Change

Average Loan Balances Per Consumer

Annual Pct. Change

Gen Z (1995 – present)

1.77%

-4.8%

$14,301

+3.7%

Millennials (1980-1994)

1.78%

-4.8%

$18,024

+2.6%

Gen X (1965-1979)

1.50%

-5.7%

$21,220

+2.0%

Baby Boomers (1946-1964)

0.83%

-3.5%

$18,638

+0.7%

Silent (Until 1945)

0.77%

+1.3%

$14,538

-0.5%

Credit Card Originations Grow to Highest Rate Since 2016

Q3 2018 IIR Credit Card Summary

New credit card accounts increased by 2.1% year-over-year, their highest growth rate since Q3 2016. Growth was primarily driven by super prime consumers with positive contributions by subprime and prime plus. This increase in originations has expanded the number of consumers with access to a credit card to a record 177.8 million. Balances continue to exhibit healthy growth, increasing 5.2% year-over-year. The average total credit line increased by 4.6% year-over-year in Q3 2018, up from 3.8% last quarter. Delinquencies of 90+DPD had a slight uptick and grew to 1.71% in Q3 2018. While trending up since 2015, delinquencies remain well below recession-era levels.

Instant Analysis

“Credit card originations reversed a declining trend for the second time in the last seven quarters. The origination mix reflected a straddle pattern across risk tiers– super prime and subprime risk segments showed growth while middle-tier prime and near prime segments experienced negative growth year-over-year. Despite the decline, the number of prime and near prime consumers with access to a credit card remained flat, and overall the number of consumers with a credit card reached a record number of 177.8 million.”

Paul Siegfried, senior vice president and credit card business leader at TransUnion.

Q3 2018 Credit Card Trends

Credit Card Lending Metric

Q3 2018

Q3 2017

Q3 2016

Q3 2015

Number of Credit Cards

425.1 million

414.3 million

398.5 million

374.2 million

Borrower-Level Delinquency Rate (90+ DPD)

1.71%

1.68%

1.53%

1.44%

Average Debt Per Borrower

$5,580

$5,483

$5,323

$5,229

Prior Quarter Originations*

15.8 million

15.5 million

17.6 million

15.3 million

Average New Account Credit Lines*

$5,390

$5,307

$5,252

$5,047

*Note: Originations are viewed one quarter in arrears to account for reporting lag.

Mortgage originations decreased by 0.4% year-over-year, continuing a trend of declining originations since Q2 2017. Consumer-level delinquencies continue to show consistent improvement, dropping every quarter since Q4 2009. Delinquencies declined to 1.7% in Q3 2018, compared to 1.9% at the same time last year. This was largely driven by drops in the near prime risk tier, where delinquencies dropped by 15% year-over-year, and the subprime risk tier which declined 9% year-over-year. Of the largest MSAs, Seattle, New York, and Boston experienced the largest declines in delinquencies while Houston, Dallas, and St. Louis experienced the smallest declines in delinquencies.

Instant Analysis

“The decline in mortgage originations is likely the impact we’re seeing from a combination of rising interest rates, steep home price appreciation, and limited starter home supply. On the refinance side, as interest rates rise, many consumers will no longer have an incentive to refinance their mortgages. On the purchase side, those rising interest rates coupled with rising home prices lead to a ‘double whammy’ for consumers interested in ‘moving up’ into a more expensive home, leading many to decide to stay in place. This in turn puts pressure on starter home supply. This trend will likely continue into the near future.”

Joe Mellman, senior vice president and mortgage business leader at TransUnion

Q3 2018 Mortgage Loan Trends

Mortgage Lending Metric

Q3 2018

Q3 2017

Q3 2016

Q3 2015

Number of Mortgage Loans

53.1 million

52.7 million

52.3 million

52.9 million

Borrower-Level Delinquency Rate (60+ DPD)

1.65%

1.91%

2.29%

2.50%

Average Debt Per Borrower

$205,782

$199,417

$193,489

$189,428

Prior Quarter Originations*

1.9 million

1.9 million

2.0 million

1.9 million

Prior Quarter Average Balance

of New Mortgage Loans*

$230,076

$224,502

$230,120

$221,753

*Note:Originations are viewed one quarter in arrears to account for reporting lag and ensure all accounts are included in the data

Q3 2018 Mortgage Loan Performance by Age

Generation

60+ DPD

Annual Pct. Change

Average Loan Balances Per Consumer

Annual Pct. Change

Gen Z (1995 – present)

1.14%

-3.4%

$149,004

+9.2%

Millennials (1980-1994)

1.37%

-11.0%

$218,849

+5.6%

Gen X (1965-1979)

2.04%

-14.3%

$233,938

+2.3%

Baby Boomers (1946-1964)

1.43%

-13.9%

$184,003

+1.8%

Silent (Until 1945)

1.73%

-6.5%

$152,069

+1.8%

About TransUnion (NYSE:TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide. We call this Information for Good. http://www.transunion.com/business

]]>Thu, 15 Nov 2018 05:00:00 -0600https://content.presspage.com/uploads/1104/500_255205960.jpg?10000TransUnion Announces Leadership Succession Planhttp://newsroom.transunion.com/transunion-announces-leadership-succession-plan/
http://newsroom.transunion.com/transunion-announces-leadership-succession-plan/James Peck to retire as President and CEO on May 8, 2019; Chris Cartwright, Executive Vice President of TransUnion’s U.S. Information Services, appointed successorTransUnion (NYSE: TRU) announced today that James M. Peck will retire as President and CEO on May 8, 2019. The Board of Directors has appointed Christopher A. Cartwright to succeed Peck effective on his retirement date. Cartwright, who joined the company in 2013, currently leads TransUnion’s largest division, U.S. Information Services (USIS) as well as the Global Product Development organization. TransUnion is filing a current report on form 8-K with the Securities and Exchange Commission that includes additional information about the company’s ongoing arrangements with Peck and Cartwright.

Peck will continue to lead TransUnion through the Annual Shareholders meeting in May 2019. He will remain on the TransUnion board. Upon Cartwright’s election as a director at the annual shareholders meeting, he will join the board.

“On behalf of the board, I would like to thank Jim for his leadership as CEO,” said Leo Mullin, chairman of the board of directors. “TransUnion has undergone a significant transformation into a high growth and diversified business during Jim’s tenure, and since the 2015 IPO has created substantial shareholder value. We are especially proud of the management team Jim has built and of the company’s disciplined succession planning process. We look forward to seeing Chris continuing TU’s track record of success.”

Peck’s tenure has been a period of evolution and growth for TransUnion. Under his leadership, TransUnion has evolved into a diversified, fast growing global information company intensely focused on client and market needs. Peck led the transformation of TransUnion’s core technology to a modern, flexible platform, implemented a global operating model and created a culture of innovation.

Peck joined TransUnion in 2012 when it was privately held by Advent International and Goldman Sachs Private Equity Group and successfully led the company’s IPO in June of 2015. During this time, TU has increased financial opportunity to its customers, to its associates and to people around the world. TransUnion’s enterprise value has increased during his tenure from slightly more than $3 billion in 2012 to over $16 billion today. Public shareholders have enjoyed a return of nearly 300% since TU’s 2015 IPO.

“I am incredibly proud of what the executive team and all our associates have accomplished and I am excited about TransUnion’s strategy going forward,” said Peck. “Now is the right time for the company to transition to the next chapter of leadership under Chris. I view our entire executive team as the best in the industry and the board identifying Chris as the next leader was the result of a deliberate succession planning process. He has successfully led our largest business unit and produced market-leading results; his division represents more than 50% of consolidated TU revenues. Equally important, Chris has led our enterprise product development organization supporting our markets globally. Chris’s expertise, strategic acumen and leadership, as well as his experience working side-by-side with the rest of the management team, make him ideally suited to continue driving our vision forward.”

“Jim has led TransUnion through a period of strong company results and I look forward to sustaining the momentum forged under his leadership,” Cartwright said. “In the months ahead, I will be focused squarely on ensuring a seamless leadership transition and on working closely with Jim to drive performance for our associates, our customers, and our shareholders.”

About James M. Peck

James M. Peck joined TransUnion in December 2012 as President and Chief Executive Officer. Mr. Peck has more than 20 years of information management, global product development and engineering experience. He has led TransUnion through a transformation into a higher-growth, higher-margin business by setting and executing a strong strategy focused on enhancing the Company’s data, technology and analytics capabilities and achieving growth in key industry verticals and international markets.

Prior to TransUnion, Mr. Peck was with Reed Elsevier, a FTSE 100 company, where he served as CEO of the LexisNexis Risk Solutions business from 2004-2012. Prior to 2004, Mr. Peck was the Senior Vice President and Chief Product Officer for the LexisNexis group. Previously, Mr. Peck was the Senior Vice President of Product Development with Celera Genomics, a bio-technology firm that sequenced the human genome. Prior to that, he spent a decade at LexisNexis in engineering and executive roles to manage and build information solutions.

Mr. Peck serves on the Board of Directors of Sun Life Financial as well as CCC Information Services. He also serves on the board of the Museum of Science and Industry, Chicago. Peck holds a bachelor's degree from the University of Dayton, and an M.B.A. from The Ohio State University. He received a CERT Certificate in Cybersecurity Oversight, issued by the CERT Division of the Software Engineering Institute at Carnegie Mellon University.

About Christopher A. Cartwright

Christopher A. Cartwright joined the Company in August 2013 as Executive Vice President-U.S. Information Services. Prior, he was the Chief Executive Officer of Decision Insight Information Group, a portfolio of independent businesses providing real property information, software and services to insurance, finance, legal and real estate professionals in the United States, Canada and Europe. Previously, he held a variety of positions at Wolters Kluwer, a global information services and workflow solutions company, where he was CEO of Corporate Legal and Financial Services Division of North America and Shared Services. Prior to Wolters Kluwer, he was Senior Vice President, Strategic Planning & Operations for Christie’s Inc. and Strategy Consultant for Coopers and Lybrand.

Mr. Cartwright holds undergraduate and graduate degrees in business from the University of Texas at Austin.

About TransUnion (NYSE: TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

]]>TRUWed, 14 Nov 2018 05:45:00 -0600https://content.presspage.com/uploads/1104/500_newsrooom-images-562927.jpg?10000Seamless Transaction Experience May Drive Retail Sales as 80% of Consumers Expect to Conduct Majority of Holiday Shopping Online http://newsroom.transunion.com/seamless-transaction-experience-may-drive-retail-sales--as-80-of-consumers-expect-to-conduct-majority-of-holiday-shopping-online/
http://newsroom.transunion.com/seamless-transaction-experience-may-drive-retail-sales--as-80-of-consumers-expect-to-conduct-majority-of-holiday-shopping-online/New TransUnion survey finds intrusive fraud prevention experience may impact online shopping Eight in 10 consumers expect to conduct at least half of their holiday shopping online this year. In fact, more than 40% of holiday shoppers will make nearly all of their purchases online. The findings come from a new TransUnion (NYSE: TRU) survey of 2,634 U.S. adults conducted during the last weekend of October 2018.

As consumers choose to shop online, it should be no surprise that e-commerce sales may reach as much as $134 billion this holiday season, according to Deloitte. Despite this massive growth in e-commerce, TransUnion’s survey found that retailers must pay even more attention in ensuring their prospective customers have a painless shopping experience.

The proliferation of fraud is a major driver for potentially challenging online experiences. In fact, a recent National Retail Federation study found that the loss of inventory related to theft, shoplifting, error or fraud had a total impact on the overall U.S. retail economy of $46.8 billion in 2017. To stop fraud losses, many retailers have devised fraud prevention tools that can sometimes prolong online shopping experiences.

Limiting the intrusiveness of such tools is critical. Almost half of survey respondents (45%) said additional identity validation requirements during the checkout process could be detrimental. While most of these consumers (39%) said they were willing to spend some time for security as long as it didn’t affect their shopping experience, about 6% said this practice would cause them to have a negative response to the retailer.

“Retailers need to be sure they provide a seamless experience for their prospective customers while also ensuring they are not being defrauded of expensive merchandise,” said Glen Goldstein, senior vice president of technology, retail and e-commerce markets at TransUnion. “It’s clear customers are willing to give retailers some time to ensure fraudulent activity is not occurring, but a long and obtrusive validation process will more than likely cause many of these businesses to lose potential sales.”

Maintaining relationships with holiday credit card users

Validation of credit card information is often a major factor in preventing fraud. According to the survey, 50% of holiday shoppers expect to use personal credit cards on their purchases and another 5% plan on using retail branded cards.

Keeping consumers motivated to continue shopping is especially important during this 2018 holiday shopping season. The survey found that while almost half of consumers (48%) will spend the same amount as last year, only 23% said they planned on spending more compared to 29% saying they will spend less.

Solving for potential online holiday shopping losses

The survey also found that many consumers find it especially important to shop at retailers who provide strong security on their e-commerce and mobile sites. About six in 10 consumers believe both account and credit card information security are most important to them during holiday shopping. In addition, mobile devices will be used as often as desktop computers.

To this effect, TransUnion this year launched IDVision with iovation, an enhanced suite of identity management, authentication and fraud prevention solutions that allow businesses to quickly and accurately determine good customers from fraudulent ones

“To fight back against fraud, retailers must move beyond rules-based systems to embrace technology that can quickly respond to threats by incorporating information from digital and device layers,” Goldstein said. “Digital layers can analyze behavior on a website from the moment of first interaction, looking for behaviors such as session velocity. Additionally, device layers can analyze attributes of the device itself, such as geolocation and reputation. The end result is that the retailer has properly safeguarded their company while also quickly moving forward with a consumer transaction.”

For more details about the TransUnion retail survey and other fraud insights, please click here.

About TransUnion (NYSE: TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

]]>fraud,fraud prevention,IDVisionTue, 13 Nov 2018 05:05:00 -0600https://content.presspage.com/uploads/1104/500_157827053.jpg?10000TransUnion’s New National Driving Record Solution Provides Insurers with a More Comprehensive View of Policyholders http://newsroom.transunion.com/transunions-new-national-driving-record-solution-provides-insurers-with-a-more-comprehensive-view-of-policyholders/
http://newsroom.transunion.com/transunions-new-national-driving-record-solution-provides-insurers-with-a-more-comprehensive-view-of-policyholders/TransUnion (NYSE: TRU) today announced the launch of its new National Driving Record solution for the personal, commercial and life insurance industries. This one-stop solution combines DriverRiskSM court records with state Motor Vehicle Reports (MVRs) for a more comprehensive view of a person’s driving record at a reduced cost. This is accomplished by bringing together TransUnion’s extensive collection of traffic-related court records with national state MVRs.

“Carriers want a cost-effective way to analyze data about driver behavior to mitigate risk, while also maintaining profitable growth and providing accurate rates for applicants and policyholders,” said Mark McElroy, executive vice president and head of TransUnion’s insurance business unit. “DriverRisk flags insurance applicants with violations early in the underwriting process to determine when an MVR is needed, which directly leads to cost savings.”

The need for such a solution is apparent. Even though approximately 75% of drivers have clean driving records, the insurance industry still spends more than $1 billion annually pulling MVRs on their driving customers, according to an internal TransUnion analysis.

Insurance applicants or policyholders are screened against TransUnion’s court record violation database. The database then rapidly identifies those who have prior driving/traffic violation activity, so that insurers can eliminate pulling MVRs on drivers with clean records. On average, insurance carriers report saving 30-50% on their total MVR expenses with their use of TransUnion’s current DriverRisk solution. State MVRs now complement the court record solution for a national solution.

With advanced search logic, the TransUnion National Driving Record solution also enables insurance companies to capture valuable insight into:

Convictions from a prior state (which may be associated with a previous Driver’s License Number), regardless of a change in name or address;

Convictions while driving outside of resident state;

Tickets that are still active (not yet adjudicated as guilty)

There are approximately 6.1 million violations in the TransUnion database for drivers who received a ticket in a state other than where they lived. This expanded view of a person’s driving record means that insurers can receive state MVRs that are, in effect, enhanced with court records, where such data is available.

“TransUnion is dedicated to finding innovative ways information can be used to help businesses and consumers,” said McElroy. “DriverRisk allows multiple configuration options so carriers can customize the solution to fit their business needs while also empowering them to selectively order MVRs to optimize spend.”

For additional information about TransUnion or DriverRisk and the National Driving Record Solution, please click here.

About TransUnion (NYSE:TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

]]>Thu, 08 Nov 2018 05:00:00 -0600https://content.presspage.com/uploads/1104/500_198071398.jpg?10000TransUnion Declares Third-Quarter 2018 Dividend of $0.075 per Sharehttp://newsroom.transunion.com/transunion-declares-third-quarter-2018-dividend-of-0075-per-share/
http://newsroom.transunion.com/transunion-declares-third-quarter-2018-dividend-of-0075-per-share/TransUnion (NYSE: TRU) today announced that its Board of Directors declared a cash dividend of $0.075 per share for the third quarter 2018. The dividend will be payable on December 6, 2018 to shareholders of record on November 21, 2018.

About TransUnion

TransUnion is a leading global risk and information solutions provider to businesses and consumers. The company provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. Businesses embed its solutions into their process workflows to acquire new customers, assess consumer ability to pay for services, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud. Consumers use its solutions to view their credit profiles and access analytical tools that help them understand and manage their personal information and take precautions against identity theft. www.transunion.com

]]>TRUWed, 07 Nov 2018 15:30:00 -0600https://content.presspage.com/uploads/1104/500_162876539.jpg?10000TransUnion to Present at J.P. Morgan Ultimate Services Investor Conferencehttp://newsroom.transunion.com/transunion-to-present-at-jp-morgan-ultimate-services-investor-conference-2/
http://newsroom.transunion.com/transunion-to-present-at-jp-morgan-ultimate-services-investor-conference-2/TransUnion (NYSE: TRU) today announced that Jim Peck, President and CEO, and Chris Cartwright, President USIS, will present at the J.P. Morgan Ultimate Services Investor Conference on Monday, November 12, 2018. The presentation is scheduled to begin at 8:00 a.m. CST (9:00 a.m. EST). A live webcast of the presentation will be made available at the TransUnion Investor Relations website at http://www.transunion.com/tru. A replay will be available on the company’s website following the conclusion of the presentation.

About TransUnion

TransUnion is a leading global risk and information solutions provider to businesses and consumers. The company provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. Businesses embed its solutions into their process workflows to acquire new customers, assess consumer ability to pay for services, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud. Consumers use its solutions to view their credit profiles and access analytical tools that help them understand and manage their personal information and take precautions against identity theft. www.transunion.com

]]>TRUMon, 05 Nov 2018 05:50:00 -0600https://content.presspage.com/uploads/1104/500_162876539.jpg?10000TransUnion Announces Agreement to Sell Noddle Business to Credit Karmahttp://newsroom.transunion.com/transunion-announces-agreement-to-sell-noddle-business-to-credit-karma/
http://newsroom.transunion.com/transunion-announces-agreement-to-sell-noddle-business-to-credit-karma/A better choice in empowering consumers with access to monitor and impact their financial healthTransUnion (NYSE: TRU) announced today an agreement to sell its Noddle business, the U.K.-based free for life credit report service, to Credit Karma. TransUnion acquired Noddle earlier this year as part of its acquisition of Callcredit, the second largest consumer bureau in the U.K.

“TransUnion is excited to bring these companies together,” said John Danaher, TransUnion’s president of Consumer Interactive. “Noddle and Credit Karma are well-matched, both embracing a ‘consumer-first’ approach to offering free information monitoring and financial health solutions. We are confident the business will continue to thrive under its new ownership and that this divestiture is a positive move for all parties, including the people of the U.K.”

Credit Karma is a personal finance technology company with more than 85 million members in North America, including almost half of all millennials. The company offers a range of personal information monitoring and financial health improvement products that are free for members. Credit Karma’s tremendous growth in the U.S. has been largely through offering award-winning user experience and free access to high-value services.

"Our mission is to help people make financial progress, and that extends beyond North America,” said Kenneth Lin, CEO and founder of Credit Karma. “For over a decade, we’ve enabled our members in the U.S. and Canada to take control of their finances by giving them free access to their financial information. We’re confident the acquisition of Noddle will help us deliver on our mission in the U.K. and welcome the opportunity to expand our partnership with TransUnion globally.”

Once the acquisition is complete, TransUnion will continue to supply Credit Karma’s customers with complete access to all of their credit reports and scores. TransUnion and Credit Karma already are partners in the United States and Canada.

Terms of the agreement will not be disclosed. The sale is anticipated to close in the fourth quarter, or early 2019, pending regulatory approval.

About TransUnion

TransUnion is a leading global risk and information solutions provider to businesses and consumers. The company provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. Businesses embed its solutions into their process workflows to acquire new customers, assess consumer ability to pay for services, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud. Consumers use its solutions to view their credit profiles and access analytical tools that help them understand and manage their personal information and take precautions against identity theft. www.transunion.com

The Federal Library and Information Network (FEDLINK) is an organization of federal agencies working together to achieve optimum use of the resources and facilities of federal libraries and information centers by promoting common services, coordinating and sharing available resources, and providing continuing professional education for federal library and information staff. FEDLINK serves federal libraries and information centers as their purchasing, training and resource-sharing consortium. As part of the agreement, TransUnion solutions that will be available via FEDLINK include:

CreditVision – A suite of tools, fueled by enriched data, credit performance trends and behaviors, and analytics providing a comprehensive and trended view of an individual’s financial health.

TLOxp – Over 100 billion public and proprietary data points, which help the government verify identities, authenticate businesses, accelerate due diligence on government vendors prior to contracting, identify potential threats, discover fraud, accelerate investigations, and combat fraud.

Recently, TransUnion was also among the first to be awarded a blanket purchase agreement by GSA’s login.gov for TransUnion’s remote identification and fraud prevention managed services and data analytics solutions.

“The FEDLINK award furthers our ability to provide the public sector with vital information through an unmatched combination of innovative credit and non-credit solutions to help protect both citizens, and government organizations from internal and external threats,” said Jonathan McDonald, executive vice president, Government Information Solutions, TransUnion. “The FEDLINK contract and our recent GSA award, make it much easier and more efficient for federal agencies to purchase and leverage TransUnion’s proven solutions, to better monitor and manage risks while reducing costs through improved organizational efficiencies.”

TransUnion’s Government Information Solutions division provides fraud, benefit eligibility verification, continuous evaluation services, identity authentication, data breach response, investigation services, and other key solutions to federal, state and local government agencies in the U.S. TransUnion’s solutions help both private and public sector organizations manage risks and reduce costs.

About FEDLINK

FEDLINK serves federal agencies, libraries and information centers as their purchasing, training and resource-sharing consortium. Its nearly 30 agency members include, but not limited to, the Departments of State, Commerce, Defense, Energy, Air Force, Army, Navy and Veterans Administration, as well as the Supreme Court and the Smithsonian Institute.

About TransUnion (NYSE: TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

]]>governmentTue, 30 Oct 2018 05:01:00 -0500https://content.presspage.com/uploads/1104/500_239747356.jpg?10000Enhanced Fraud Suite Unifies Personal and Digital Identitieshttp://newsroom.transunion.com/enhanced-fraud-suite-unifies-personal-and-digital-identities/
http://newsroom.transunion.com/enhanced-fraud-suite-unifies-personal-and-digital-identities/TransUnion announces IDVision with iovation, enabling businesses and consumers to safely and seamlessly transact in a digital world TransUnion (NYSE: TRU) together with iovation, a TransUnion company, today announced at Money20/20 the launch of IDVision with iovation, an enhanced suite of identity management, authentication and fraud prevention solutions that protect businesses from fraud while enabling great experiences for their online users.

IDVision with iovation brings together a combination of TransUnion’s extensive personal data with iovation’s digital data. This results in a global network effect of fraud and risk insights that allow businesses to quickly and accurately determine good customers from fraudulent ones. In addition to other capabilities, iovation’s marquee FraudForce Device-based Reputation product has been integrated into the enhanced suite of solutions.

“Ensuring top-notch security with an excellent customer experience is fundamental for businesses to effectively grow and thrive in a digital world,” said Geoff Miller, head of global fraud and identity solutions for TransUnion. “As more consumers move online, data compromises and fraud threats continue to rise. This has magnified the need for robust identity verification and fraud detection tools that do not hinder the customer experience. IDVision with iovation combines TransUnion’s collection of one billion consumer records with iovation’s five billion digital devices into a seamless solution that allows businesses to build a defined identity strategy.”

IDVision’s fraud identification and mitigation capabilities will work together with iovation’s longstanding fraud prevention solutions – which have identified or prevented nearly 145,000 fraud attacks daily and have protected up to 7 billion transactions since January 1, 2018. Additionally, iovation’s database contains over five billion identified devices to date.

Underscoring the need for this type of solution, a recent study conducted by Forrester Consulting, uncovered that approximately 70% of financial services firms reported their customers prefer to use digital channels over other channels. Furthermore, 64% of financial institutions indicated that the growth of online interactions has increased fraud and identity theft risk.

Establishing Identity: Identity is verified against a broad set of personal and digital data for greater identity confidence.

Authenticating Customers: IDVision with iovation validates the customer’s claimed identity to confirm they are who they say they are. It employs methods that match the risk level by utilizing authentication at specific touchpoints.

TransUnion and iovation will be showcasing IDVision with iovation at Money20/20 USA October 21-24, 2018 in Las Vegas. More information can be found at the TransUnion booth #2121 or at the following website.

About TransUnion

TransUnion is a leading global risk and information solutions provider to businesses and consumers. The company provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. Businesses embed its solutions into their process workflows to acquire new customers, assess consumer ability to pay for services, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud. Consumers use its solutions to view their credit profiles and access analytical tools that help them understand and manage their personal information and take precautions against identity theft. www.transunion.com

iovation, a TransUnion company, was founded with a simple guiding mission: to make the Internet a safer place for people to conduct business. Since 2004, the company has been delivering against that goal, helping brands protect and engage their customers, and keeping them secure in the complex digital world. Armed with the world’s largest and most precise database of reputation insights and cryptographically secure multi-factor authentication methods, iovation safeguards tens of millions of digital transactions each day.

]]>Wed, 24 Oct 2018 06:00:00 -0500https://content.presspage.com/uploads/1104/500_212389360.jpg?10000Building Loyalty with Gen Z and Millennials Starts with a Better Experiencehttp://newsroom.transunion.com/building-loyalty-with-gen-z-and-millennials-starts-with-a-better-experience/
http://newsroom.transunion.com/building-loyalty-with-gen-z-and-millennials-starts-with-a-better-experience/TransUnion explores the changing dynamics of consumer loyaltyWhat is the price of loyalty? In an era where consumer preferences are changing, garnering customer loyalty is more valuable than ever before. To explore loyalty trends, especially among Gen Z and Millennial consumers, TransUnion (NYSE: TRU) today released a new report, "Consumer First: The Path Forward in Financial Services," during the Money 20/20 conference. Studying loyalty dynamics is critically important, as consumers find themselves with an unprecedented wealth of diverse options available when it comes to financial services.

The report, which includes both proprietary TransUnion data and information from a new survey of over 2,700 consumers, found that younger consumers in particular have become an influential force for financial institutions, and are challenging the conventional wisdom around consumer loyalty. By 2019, the two youngest generations—Gen Z (born 1995 or later) and Millennials (born 1980 to 1994)—will compose nearly two-thirds of the global population (64%), and many of them will be taking an even more substantial part in the credit market.[1]

“Building strong relationships with customers has been paramount for success in the financial services industry for decades,” said Steve Chaouki, executive vice president and head of the financial services business unit at TransUnion. “Today, we have observed that relationship building is much different than it was just a decade ago. What worked in the 1990s or 2000s may not necessarily be advantageous with the tech-savvy Millennial and Gen Z generations. Better understanding the needs of these generations can help financial services firms across the spectrum of size and sophistication build longer lasting relationships with these hugely important consumers.”

There’s an App for That: Generation Z and the Future of Consumer Loyalty

Overwhelmingly, consumers are setting a much higher bar for how they interact with financial institutions, and have come to expect a seamless user experience. According to the report, an easy-to-use mobile application was rated as one of the most important factors in driving loyalty for both Millennial and Gen Z consumers. Nine out of 10 of those surveyed indicated they manage accounts through their financial institutions’ websites or apps.

Gen Z and Millennial consumers are more likely than the rest of the population to select a financial institution based on whether or not it offered access to credit monitoring tools to help them better understand their credit scores. This type of interactive customer experience has only taken place for the past few years, but approximately one in five surveyed consumers said this was a reason why they selected a financial institution for a loan or credit card. Recent TransUnion analysis around the use of TransUnion’s CreditView Dashboard has also found that credit monitoring behaviors may also be linked to credit score increases.

“Consumers want to feel empowered and take an active role in managing their finances. Arming them with more information can help them make smarter financial decisions,” said Chaouki. “Trust and transparency are fundamental to building a strong foundation with consumers. Offering financial management tools that are educational and interactive are a key step towards driving loyalty.”

Loyalty Changing Dramatically in the Credit Card Market

A variety of factors are compelling financial institutions to take a renewed focus on their customers. Eight in 10 consumers have noted they would switch financial institutions for a better experience, with younger consumers greatly driving this shift to new lenders.[2]

In particular, changes in the credit card market have been heavily influenced by the youngest generations. While TransUnion studies have found that consumers generally have a much higher propensity of opening their next credit product with a lender with whom they already have multiple relationships, this doesn’t appear to hold true for Gen Z. Younger consumers are engaging with new lenders rather than going to existing lenders for new products. In the report, Gen Z respondents indicated that they were the least likely to open a new credit product with a financial institution as a result of an existing relationship with that lender.

“The dynamics of having a bank account, mortgage and credit card with the same institution are changing. Increased competition has greatly impacted the industry,” said Paul Siegfried, senior vice president and credit card business leader at TransUnion. “Consumers have more choices at their disposal, and a greater value has been placed on reward programs and customer experience, especially with younger generations. Financial institutions must take a long-term view and evolve their strategies to build and nurture their relationships with consumers.”

While consumers are carrying more credit cards in their wallets today than in 2010, the industry has seen five straight quarters of declining year-over-year origination growth. The study also found that the average duration for which a credit card remains open has shortened across the majority of age groups, which would indicate shifting loyalty.

Average tenure of open credit cards in months, by age group*

Year/Age group

18-25

30-35

40-45

50-55

60+

2010

50

75

98

117

147

2017

41

70

93

113

150

*Prime and above risk tiers – VantageScore 3.0 risk ranges:

Prime= 661-720; Prime plus= 721-780; Super prime= 781-850

*TransUnion Dynamics of Consumer Loyalty and Preference Study

“To be successful in this new era of financial services, institutions can no longer focus solely on single product profitability—they must consider customer satisfaction and overall relationship returns,” said Chaouki. “Consumers are clearly in the driver’s seat; they are willing or able to look elsewhere if a lender is not meeting their needs or expectations.”

Please click here to download the complete “Consumer First: The Path Forward in Financial Services” report. Financial institutions can use this information as a framework to build relationships, drive loyalty and make smarter decisions in the Consumer First era.

About TransUnion

TransUnion is a leading global risk and information solutions provider to businesses and consumers. The company provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. Businesses embed its solutions into their process workflows to acquire new customers, assess consumer ability to pay for services, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud. Consumers use its solutions to view their credit profiles and access analytical tools that help them understand and manage their personal information and take precautions against identity theft. www.transunion.com

Total Revenue was $604 million, an increase of 21 percent compared with the third quarter of 2017 (22 percent on a constant currency basis, 11 percent on an organic constant currency basis).

Adjusted Revenue, which removes the impact of deferred revenue purchase, accounting reductions and other adjustments to revenue for our recently acquired entities, was $621 million, an increase of 25 percent compared with the third quarter of 2017 (26 percent on a constant currency basis, 11 percent on an organic constant currency basis).

Earnings:

Net income attributable to TransUnion was $46 million, compared with $69 million in the third quarter of 2017. The decrease in net income attributable to TransUnion was due to incremental amortization and interest expense and integration-related costs resulting from our recent business acquisitions. As a result, diluted earnings per share was $0.24, compared with $0.36 in the third quarter of 2017.

Adjusted Net Income was $125 million, compared with $93 million in the third quarter of 2017. Adjusted Diluted Earnings per Share was $0.65, compared with $0.49 in the third quarter of 2017.

Adjusted EBITDA was $245 million, an increase of 26 percent compared with the third quarter of 2017 (28 percent on a constant currency basis). Adjusted EBITDA margin was 39.4 percent, compared with 39.0 percent in the third quarter of 2017.

“TransUnion delivered another quarter of strong performance with double-digit growth in Revenue, Adjusted Revenue and Adjusted EBITDA along with strong organic revenue growth in all three segments,” said Jim Peck, President and CEO. “We continue to execute well and are delivering broad-based growth as a result of our industry-leading innovation, attractive vertical and geographic markets and differentiated technology platform.”

“As we look forward to the end of 2018 and to 2019, we remain bullish that we can continue to drive strong, above market growth as we continue to deliver meaningful innovation, integrate and fully leverage our recent acquisitions and also continue to gain market share from key accounts,” he concluded.

Third Quarter 2018 Segment Results

U.S. Information Services (USIS)

USIS revenue was $375 million, an increase of 20 percent compared with the third quarter of 2017 (11 percent on an organic basis). USIS Adjusted Revenue was $376 million.

Online Data Services revenue was $235 million, an increase of 17 percent compared with the third quarter of 2017 (11 percent on an organic basis).

Marketing Services revenue was $60 million, an increase of 23 percent compared with the third quarter of 2017

Decision Services revenue was $80 million, an increase of 26 percent compared with the third quarter of 2017 (3 percent on an organic basis). Adjusted Revenue was $81 million.

Operating income was $93 million, an increase of 12 percent compared with the third quarter of 2017. Adjusted Operating Income was $131 million, an increase of 19 percent compared with the third quarter of 2017 (15 percent on an organic basis).

International

International revenue was $129 million, an increase of 36 percent compared with the third quarter of 2017 (42 percent on a constant currency basis, 12 percent on an organic constant currency basis). International Adjusted Revenue was $145 million.

Developed markets revenue was $64 million, an increase of 89 percent (92 percent on a constant currency basis, 9 percent on an organic constant currency basis) compared with the third quarter of 2017. Adjusted Revenue was $80 million.

Emerging markets revenue was $65 million, an increase of 6 percent compared with the third quarter of 2017 (14 percent on a constant currency basis).

Operating income was $4 million, a decrease of 80 percent (70 percent on a constant currency basis) compared with the third quarter of 2017. The decrease was due to incremental amortization expense and integration-related costs resulting from our recent business acquisition. Adjusted Operating Income was $50 million, an increase of 54 percent compared with the third quarter of 2017 (62 percent on a constant currency basis, 18 percent on an organic constant currency basis).

Consumer Interactive

Consumer Interactive revenue was $119 million, an increase of 11 percent compared with the third quarter of 2017. Revenue in the third quarter of 2018 included approximately $5 million of incremental credit monitoring revenue due to a breach at a competitor.

Operating income was $57 million, an increase of 22 percent compared with the third quarter of 2017. Adjusted Operating Income was $59 million, an increase of 21 percent compared with the third quarter of 2017.

Liquidity and Capital Resources

Cash and cash equivalents were $227 million at September 30, 2018 and $116 million at December 31, 2017. Total debt, including the current portion of long-term debt, was $4.1 billion at September 30, 2018, compared with $2.5 billion at December 31, 2017. The increase was due to the funding of our Callcredit, iovation and HPS acquisitions, which closed in the second quarter of 2018.

For the nine months ended September 30, 2018, cash provided by continuing operations was $410 million compared with $347 million in 2017. The increase was due primarily to the increase in operating performance, partially offset by an increase in interest expense resulting from the increase in outstanding debt. Cash used in investing activities was $1,927 million compared with $149 million in 2017, due primarily to the significant increase in cash used to fund acquisitions. Capital expenditures were $118 million compared with $91 million in 2017. Cash from financing activities was $1,634 million compared with a use of cash of $127 million in 2017. The increase in cash provided by financing activities was due primarily to cash borrowed to fund our acquisitions and a decrease in treasury stock repurchased, partially offset by dividends paid in 2018.

2018 Full Year Outlook

For the full year of 2018, we are raising our Adjusted Revenue, Adjusted EBITDA and Adjusted Diluted Earnings per Share guidance as follows. Adjusted Revenue is expected to be between $2.342 billion and $2.347 billion, an increase of 21 percent compared with 2017. Adjusted EBITDA is expected to be between $912 million and $915 million, an increase of 22 percent. Adjusted Diluted Earnings per Share is expected to be between $2.46 and $2.47, an increase of 31 to 32 percent. Adjusted Diluted Earnings per Share includes a benefit of approximately $0.31 due to the recently enacted Tax Cuts and Jobs Act. Adjusted Diluted Earnings per Share guidance also includes an approximate $0.02 headwind from unfavorable foreign exchange rates and an approximate $0.01 per share headwind from the impact of higher LIBOR rates on the debt existing prior to the incremental financing activities completed in June 2018.

The Adjusted Revenue guidance includes approximately 10 points growth from acquisitions that closed in the prior year and in the second quarter of 2018, as well as approximately 50 basis points of drag on Adjusted Revenue and approximately 70 basis points of drag on Adjusted EBITDA from foreign exchange rates. Our guidance also includes approximately $16 million of incremental monitoring revenue due to a breach at a competitor, compared with $4 million in 2017. The expected increase in this incremental revenue represents 0.5 percent of the total growth.

2018 Fourth Quarter Outlook

For the fourth quarter of 2018, Adjusted Revenue is expected to be between $620 million and $625 million, an increase of 23 to 24 percent compared with the fourth quarter of 2017. Adjusted EBITDA is expected to be between $243 million and $246 million, an increase of 24 to 26 percent. Adjusted Diluted Earnings per Share is expected to be between $0.62 and $0.63, an increase of 24 to 26 percent. Adjusted Diluted Earnings per share includes a benefit of approximately $0.08 due to the recently enacted Tax Cuts and Jobs Act.

The fourth quarter Adjusted Revenue guidance includes approximately 15 points of growth from acquisitions that closed in the prior year and in the second quarter of 2018. Foreign exchange rates are driving approximately 1 percent of drag on Adjusted Revenue and 2 percent drag on Adjusted EBITDA.

Given the size of the Callcredit acquisition, beginning in the third quarter 2018, we have modified our Non-GAAP financial measures of Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted Earnings per Share to add back costs incurred relating to our integration of Callcredit. We expect to add these costs back to these Non-GAAP performance measures for approximately two years. Additionally, beginning with the third quarter 2018, we have begun to disclose the Non-GAAP financial measure of Adjusted Revenue. Adjusted Revenue is intended to reflect what revenue would have been had we not reduced the amount of deferred revenue on the opening balance sheets for recently acquired businesses as a result of applying business combination fair value accounting principles. We expect deferred revenue adjustments for acquisitions that closed in the second quarter of 2018 to primarily last for approximately one year, with the remainder to last up to two years. We believe the best period-over-period comparison of revenue over the next one to two years as we run off this impact will be Adjusted Revenue compared with GAAP revenue in periods prior to and after the impact of this run-off is complete. Further, revenue from certain non-core customer contracts of Callcredit that are not classified as discontinued operations and that are expected to expire within one year have been excluded from Adjusted Revenue. See Non-GAAP Financial Measures below and Schedules 1, 2, 3, 5 and 7 for additional information.

Earnings Webcast Details

In conjunction with this release, TransUnion will host a conference call and webcast today at 8:00 a.m. Central Time to discuss the business results for the quarter and certain forward-looking information. This session may be accessed at www.transunion.com/tru. A replay of the call will also be available at this website following the conclusion of the call.

About TransUnion

TransUnion is a leading global risk and information solutions provider to businesses and consumers. The Company provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. Businesses embed its solutions into their process workflows to acquire new customers, assess consumer ability to pay for services, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud. Consumers use its solutions to view their credit profiles and access analytical tools that help them understand and manage their personal information and take precautions against identity theft.

Availability of Information on TransUnion’s Website

Investors and others should note that TransUnion routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the TransUnion Investor Relations website. While not all of the information that the Company posts to the TransUnion Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in TransUnion to review the information that it shares on www.transunion.com/tru.

Non-GAAP Financial Measures

This earnings release presents constant currency growth rates assuming foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates. This earnings release also presents organic constant currency growth rates, which assumes consistent foreign currency exchange rates between years and also eliminates the impact of our recent acquisitions. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates and the impacts of recent acquisitions. This earnings release also presents Adjusted Revenue for periods beginning July 1, 2018, and Adjusted EBITDA, Adjusted EBITDA Margin, segment Adjusted Operating Income, segment Adjusted Operating Margin, Adjusted Effective Tax Rate, Adjusted Net Income (Loss) and Adjusted Diluted Earnings per Share for all periods presented. These are important financial measures for the Company but are not financial measures as defined by GAAP. We present these financial measures as supplemental measures of our operating performance because we believe they provide meaningful information regarding our performance and provide a basis to compare operating results between periods. We present Adjusted Operating Income, Adjusted EBITDA and Adjusted Net Income as supplemental measures of our operating performance because these measures eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. Also, Adjusted EBITDA is a measure frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours. In addition, our board of directors and executive management team use Adjusted Revenue and Adjusted EBITDA as compensation measures. Furthermore, under the credit agreement governing our senior secured credit facility, our ability to engage in activities such as incurring additional indebtedness, making investments and paying dividends is tied to a ratio based on Adjusted EBITDA. These financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as alternative measures of GAAP. Other companies in our industry may define or calculate these measures differently than we do, limiting their usefulness as comparative measures. Because of these limitations, these non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP, including operating income, operating margin, effective tax rate, net income (loss) attributable to the Company, earnings per share or cash provided by operating activities. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the attached Schedules.

Adjusted Revenue is defined as GAAP revenue adjusted for certain acquisition-related deferred revenue and non-core contract-related revenue as further discussed in footnote 1 of the attached Schedules 2, 3, 5 and 7. Adjusted EBITDA is defined as net income (loss) attributable to TransUnion plus (less) loss (income) from discontinued operations, plus net interest expense, plus (less) provision (benefit) for income taxes, plus depreciation and amortization, plus (less) the revenue adjustments included in Adjusted Revenue, plus stock-based compensation, plus mergers, acquisitions, divestitures and business optimization-related expenses including Callcredit integration-related expenses, plus (less) certain other expenses (income). Adjusted Operating Income is defined as operating income plus (less) the revenue adjustments included in Adjusted Revenue, plus stock-based compensation, plus certain mergers, acquisitions, divestitures and business optimization-related expenses including Callcredit integration-related expenses, plus (less) certain other expenses (income), plus amortization of certain intangible assets. Adjusted Effective Tax Rate is defined as Adjusted Provision for Income Taxes divided by Adjusted Income Before Income Taxes. Adjusted Net Income is defined as net income (loss) attributable to TransUnion plus (less) loss (gain) from discontinued operations, plus (less) the revenue adjustments included in Adjusted Revenue, plus stock-based compensation, plus mergers, acquisitions, divestitures and business optimization-related expenses including Callcredit integration-related expenses, plus (less) certain other expenses (income), plus amortization of certain intangible assets, plus or minus the related changes in provision for income taxes, less any one-time tax provision benefits from the Tax Cuts and Jobs Act. Adjusted Diluted Earnings per Share is defined as Adjusted Net Income divided by the weighted-average diluted shares outstanding. The above definitions apply to our calculations for the historical periods shown on schedules 1 through 5, and for the periods covered by our guidance as shown in Schedule 7.

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Any statements made in this earnings release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements. These statements often include words such as “anticipate,” “expect,” “guidance,” “suggest,” “plan,” “believe,” “intend,” “estimate,” “target,” “project,” “should,” “could,” “would,” “may,” “will,” “forecast,” “outlook,” “potential,” “continues,” “seeks,” “predicts,” or the negative of these words and other similar expressions. Factors that could cause actual results to differ materially from those described in the forward-looking statements include macroeconomic and industry trends and adverse developments in the debt, consumer credit and financial services markets; our ability to provide competitive services and prices; our ability to retain or renew existing agreements with large or long-term customers; our ability to maintain the security and integrity of our data; our ability to deliver services timely without interruption; our ability to maintain our access to data sources; government regulation and changes in the regulatory environment; litigation or regulatory proceedings; regulatory oversight of “critical activities;” our ability to effectively manage our costs; economic and political stability in the United States and international markets where we operate; our ability to effectively develop and maintain strategic alliances and joint ventures; our ability to timely develop new services and the market’s willingness to adopt our new services; our ability to manage and expand our operations and keep up with rapidly changing technologies; our ability to make acquisitions, successfully integrate the operations of acquired businesses and realize the intended benefits of such acquisitions; our ability to protect and enforce our intellectual property, trade secrets and other forms of unpatented intellectual property; our ability to defend our intellectual property from infringement claims by third parties; the ability of our outside service providers and key vendors to fulfill their obligations to us; further consolidation in our end-customer markets; the increased availability of free or inexpensive consumer information; losses against which we do not insure; our ability to make timely payments of principal and interest on our indebtedness; our ability to satisfy covenants in the agreements governing our indebtedness; our ability to maintain our liquidity; share repurchase plans; our reliance on key management personnel; and other one-time events and other factors that can be found in our Annual Report on Form 10-K for the year ended December 31, 2017, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are filed with the Securities and Exchange Commission and are available on TransUnion’s website (www.transunion.com/tru) and on the Securities and Exchange Commission’s website (www.sec.gov). Many of these factors are beyond our control. The forward-looking statements contained in this earnings release speak only as of the date of this earnings release. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this earnings release.

In addition to factors previously disclosed in TransUnion’s reports filed with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: failure to realize the benefits expected from the recent business acquisitions; the effects of pending and future legislation; risks related to disruption of management time from ongoing business operations due to the recent business acquisitions; macroeconomic factors beyond TransUnion’s control; risks related to TransUnion’s indebtedness and other consequences associated with mergers, acquisitions and divestitures, and legislative and regulatory actions and reforms.

TRANSUNION AND SUBSIDIARIES

Consolidated Balance Sheets

(in millions, except per share data)

September 30, 2018

December 31, 2017

Unaudited

Assets

Current assets:

Cash and cash equivalents

$

226.6

$

115.8

Trade accounts receivable, net of allowance of $13.7 and $9.9

426.1

326.7

Other current assets

160.6

146.2

Current assets of discontinued operations

72.7

—

Total current assets

886.0

588.7

Property, plant and equipment, net of accumulated depreciation and amortization of $351.6 and $299.3

198.2

198.6

Goodwill, net

3,339.0

2,368.8

Other intangibles, net of accumulated amortization of $1,141.4 and $993.6

2,570.1

1,825.8

Other assets

148.0

136.6

Total assets

$

7,141.3

$

5,118.5

Liabilities and stockholders’ equity

Current liabilities:

Trade accounts payable

$

159.1

$

131.3

Short-term debt and current portion of long-term debt

64.2

119.3

Other current liabilities

301.1

207.8

Current liabilities of discontinued operations

21.3

—

Total current liabilities

545.7

458.4

Long-term debt

4,057.6

2,345.3

Deferred taxes

529.6

419.4

Other liabilities

44.3

70.8

Total liabilities

5,177.2

3,293.9

Stockholders’ equity:

Common stock, $0.01 par value; 1.0 billion shares authorized at September 30, 2018 and December 31, 2017, 189.5 million and 187.4 million shares issued at September 30, 2018 and December 31, 2017, respectively, and 185.3 million shares and 183.2 million shares outstanding as of September 30, 2018 and December 31, 2017, respectively

1.9

1.9

Additional paid-in capital

1,923.9

1,863.5

Treasury stock at cost; 4.2 million shares at September 30, 2018 and December 31, 2017, respectively

(139.5)

(138.8)

Retained earnings

275.2

137.4

Accumulated other comprehensive loss

(193.9)

(135.3)

Total TransUnion stockholders’ equity

1,867.6

1,728.7

Noncontrolling interests

96.5

95.9

Total stockholders’ equity

1,964.1

1,824.6

Total liabilities and stockholders’ equity

$

7,141.3

$

5,118.5

TRANSUNION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

(in millions, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2018

2017

2018

2017

Revenue

$

603.6

$

498.0

$

1,704.1

$

1,427.7

Operating expenses

Cost of services (exclusive of depreciation and amortization below)

207.5

169.3

579.0

472.3

Selling, general and administrative

189.8

142.2

524.6

436.0

Depreciation and amortization

84.2

59.9

218.8

176.2

Total operating expenses

481.5

371.4

1,322.3

1,084.5

Operating income

122.1

126.6

381.7

343.2

Non-operating income and (expense)

Interest expense

(44.0)

(21.7)

(92.5)

(65.8)

Interest income

1.3

1.5

3.5

4.2

Earnings from equity method investments

3.2

2.6

8.4

6.3

Other income and (expense), net

(3.2)

(4.8)

(45.6)

(15.6)

Total non-operating income and (expense)

(42.7)

(22.4)

(126.1)

(70.9)

Income from continuing operations before income taxes

79.4

104.2

255.6

272.3

Provision for income taxes

(28.6)

(32.3)

(72.1)

(68.7)

Income from continuing operations

50.8

71.9

183.5

203.6

Discontinued operations, net of tax

(1.4)

—

(1.4)

—

Net income

49.4

71.9

182.0

203.6

Less: net income attributable to the noncontrolling interests

(3.1)

(3.1)

(7.6)

(7.6)

Net income attributable to TransUnion

$

46.3

$

68.8

$

174.4

$

196.0

Income from continuing operations

50.8

71.9

183.5

203.6

Less: income from continuing operations attributable to noncontrolling interests

(3.1)

(3.1)

(7.6)

(7.6)

Income from continuing operations attributable to TransUnion

47.7

68.8

175.9

196.0

Discontinued operations, net of tax

(1.4)

—

(1.4)

—

Net income attributable to TransUnion

$

46.3

$

68.8

$

174.4

$

196.0

Basic earnings per common share from:

Income from continuing operations attributable to TransUnion

$

0.26

$

0.38

$

0.95

$

1.08

Discontinued operations, net of tax

(0.01)

—

(0.01)

—

Net Income attributable to TransUnion

$

0.25

$

0.38

$

0.95

$

1.08

Diluted earnings per common share from:

Income from continuing operations attributable to TransUnion

$

0.25

$

0.36

$

0.92

$

1.03

Discontinued operations, net of tax

(0.01)

—

(0.01)

—

Net Income attributable to TransUnion

$

0.24

$

0.36

$

0.91

$

1.03

Weighted-average shares outstanding:

Basic

185.1

182.2

184.4

182.3

Diluted

191.2

189.2

190.8

189.8

As a result of displaying amounts in millions, rounding differences may exist in the table above.

TRANSUNION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Unaudited)

(in millions)

Nine Months Ended September 30,

2018

2017

Cash flows from operating activities:

Net income

$

182.0

$

203.6

Add: loss from discontinued operations, net of tax

1.4

—

Income from continuing operations

183.5

203.6

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

218.8

176.2

Loss on debt financing transactions

12.0

10.5

Amortization and (gain) loss on fair value of hedge instrument

(0.7)

0.5

Impairment of Cost Method Investment, net

1.5

—

Equity in net income of affiliates, net of dividends

(3.1)

(5.5)

Deferred taxes

(17.9)

(14.1)

Amortization of discount and deferred financing fees

3.2

2.0

Stock-based compensation

36.9

23.1

Payment of contingent obligation

(0.2)

(2.2)

Provision for losses on trade accounts receivable

6.3

3.3

Other

3.0

(2.1)

Changes in assets and liabilities:

Trade accounts receivable

(79.4)

(40.1)

Other current and long-term assets

(5.5)

(37.8)

Trade accounts payable

8.3

10.2

Other current and long-term liabilities

43.6

19.1

Cash provided by operating activities of continuing operations

410.3

346.7

Cash used in operating activities of discontinued operations

(0.9)

—

Cash provided by operating activities

409.4

346.7

Cash flows from investing activities:

Capital expenditures

(118.3)

(91.0)

Proceeds from sale of trading securities

1.8

2.5

Purchases of trading securities

(2.0)

(1.6)

Proceeds from sale of other investments

15.9

54.4

Purchases of other investments

(22.7)

(42.1)

Acquisitions and purchases of noncontrolling interests, net of cash acquired

For the Three Months Ended September 30, 2018 Compared with the Three Months Ended September 30, 2017

Reported

CC Growth(1)

Inorganic(2)

Organic Growth(3)

Organic CC Growth(4)

Revenue:

Consolidated

21.2

%

22.4

%

11.2

%

10.0

%

11.2

%

USIS

20.1

%

20.1

%

8.8

%

11.3

%

11.3

%

Online

17.5

%

17.5

%

6.5

%

11.0

%

11.0

%

Marketing Services

22.8

%

22.8

%

—

%

22.8

%

22.8

%

Decision Services

26.4

%

26.4

%

23.0

%

3.4

%

3.4

%

International

35.6

%

41.7

%

29.7

%

5.8

%

12.0

%

Developed Markets

89.1

%

92.3

%

83.6

%

5.5

%

8.7

%

Emerging Markets

6.0

%

13.8

%

—

%

6.0

%

13.8

%

Consumer Interactive

11.3

%

11.3

%

—

%

11.3

%

11.3

%

Adjusted Revenue:

Consolidated

24.8

%

25.9

%

14.8

%

10.0

%

11.2

%

USIS

20.5

%

20.5

%

9.2

%

11.3

%

11.3

%

Online

17.5

%

17.5

%

6.5

%

11.0

%

11.0

%

Marketing Services

22.8

%

22.8

%

—

%

22.8

%

22.8

%

Decision Services

28.1

%

28.1

%

24.7

%

3.4

%

3.4

%

International

53.1

%

59.3

%

47.2

%

5.8

%

12.0

%

Developed Markets

138.3

%

141.5

%

132.8

%

5.5

%

8.7

%

Emerging Markets

6.0

%

13.8

%

—

%

6.0

%

13.8

%

Consumer Interactive

11.3

%

11.3

%

—

%

11.3

%

11.3

%

Operating Income:

Consolidated

(3.6)

%

(2.0)

%

(21.2)

%

17.6

%

19.2

%

USIS

12.4

%

12.3

%

(8.2)

%

20.6

%

20.6

%

International

(80.4)

%

(70.5)

%

(100.6)

%

20.2

%

30.2

%

Consumer Interactive

21.7

%

21.7

%

—

%

21.7

%

21.7

%

Adjusted Operating Income:

Consolidated

26.3

%

27.7

%

11.5

%

14.9

%

16.3

%

USIS

19.2

%

19.2

%

4.6

%

14.6

%

14.6

%

International

54.4

%

61.8

%

44.0

%

10.4

%

17.8

%

Consumer Interactive

21.5

%

21.5

%

—

%

21.5

%

21.5

%

Adjusted EBITDA:

Consolidated

26.1

%

27.6

%

(1) CC (constant currency) growth rates assume foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates.(2) Inorganic growth rate represents growth attributable to the first twelve months of activity for recent business acquisitions.(3) Organic growth rate is the GAAP growth rate less the inorganic growth rate.

Reconciliation of net income attributable to TransUnion to Adjusted EBITDA:

Net income attributable to TransUnion

$

46.3

$

68.8

$

174.4

$

196.0

Discontinued operations

1.4

—

1.4

—

Net income from continuing operations attributable to TransUnion

47.7

68.8

175.9

196.0

Net interest expense

42.6

20.2

89.0

61.6

Provision for income taxes

28.6

32.3

72.1

68.7

Depreciation and amortization

84.2

59.9

218.8

176.2

EBITDA

203.2

181.3

555.8

502.6

Adjustments to EBITDA:

Acquisitions revenue-related adjustment (1)

17.7

—

17.7

—

Stock-based compensation(2)

16.3

9.5

43.2

34.3

Mergers and acquisitions, divestitures and business optimization(3)

6.2

(1.7)

35.3

5.2

Other(4)

1.5

5.0

16.1

9.8

Total adjustments to EBITDA

41.7

12.9

112.4

49.3

Adjusted EBITDA

$

244.9

$

194.1

$

668.1

$

551.9

EBITDA margin

33.7

%

36.4

%

32.6

%

35.2

%

Adjusted EBITDA Margin

39.4

%

39.0

%

38.8

%

38.7

%

As a result of displaying amounts in millions, rounding differences may exist in the table above.

(1) This adjustment represents certain non-cash adjustments related to acquired entities, predominantly adjustments to increase revenue resulting from purchase accounting reductions to deferred revenue we record on the opening balance sheets of acquired entities. Deferred revenue results when a company receives payment in advance of fulfilling their performance obligations under contracts. Business combination accounting rules require us to record deferred revenue of acquired entities at fair value if we are obligated to perform any future services under these contracts. The fair value of this deferred revenue is determined based on the direct and indirect incremental costs of fulfilling our performance obligations under these contracts, plus a normal profit margin. Generally, this fair value calculation results in a reduction to the purchased deferred revenue balance. The above adjustment includes an estimate for the increase in revenue equal to the difference between what the acquired entities would have recorded as revenue and the lower revenue we record as a result of the reduced deferred revenue balance. This increase is partially offset by an estimated decrease to revenue for certain acquired non-core customer contracts that are not classified as discontinued operations that will expire within approximately one year. We present Adjusted Revenue as a supplemental measure of our revenue because we believe it provides meaningful information regarding our revenue and provides a basis to compare revenue between periods. In addition, our board of directors and executive management team use Adjusted Revenue as a compensation measure under our incentive compensation plan. The table above provides a reconciliation for revenue to Adjusted Revenue. The estimated adjustments to revenue are subject to change as we finalize the fair value assessments of the deferred revenue acquired with recent acquisitions and as we complete our assessment of the non-core customer contracts.

(3) For the three months ended September 30, 2018, consisted of the following adjustments to operating income: $4.2 million of Callcredit integration costs; a $0.2 million loss on the divestiture of a small business operation; and a $0.1 million adjustment to contingent consideration expense from previous acquisitions. For the three months ended September 30, 2018, consisted of the following adjustments to non-operating income and expense: $1.7 million of acquisition expenses; a $0.2 million loss from a fair value remeasurement of an investment in a nonconsolidated affiliate; a $(0.1) million offset to the loss included in operating income adjustments on the divestiture of a small business operation for the portion that is attributable to the non-controlling interest; and $(0.1) million of miscellaneous. For the nine months ended September 30, 2018, consisted of the following adjustments to operating income: $4.2 million of Callcredit integration costs and a $1.2 million loss on the divestiture of a small business operation; and a $0.1 million adjustment to contingent consideration expense from previous acquisitions. For the nine months ended September 30, 2018, consisted of the following adjustments to non-operating income and expense: $28.7 million of acquisition expenses; a $1.5 million net loss from the fair value remeasurements of investments in nonconsolidated affiliates; and a $(0.4) million offset to the loss included in operating income adjustments on the divestiture of a small business operation for the portion that is attributable to the non-controlling interest.

For the three months ended September 30, 2017, consisted of the following adjustments to operating income: a $0.4 million adjustment to contingent consideration expense from previous acquisitions. For the three months ended September 30, 2017, consisted of the following adjustments to non-operating income and expense: a $(2.0) million net reduction in acquisition expenses resulting from a reimbursement of certain acquisition costs recorded in prior periods partially offset by other acquisition costs; and $(0.1) million of miscellaneous. For the nine months ended September 30, 2017, consisted of the following adjustments to operating income: a $0.5 million loss on the divestiture of a small business operation; and a $0.2 million adjustment to contingent consideration expense from previous acquisitions. For the nine months ended September 30, 2017, consisted of the following adjustments to non-operating income and expense: $4.5 million of acquisition expenses.

(4) For the three months ended September 30, 2018, consisted of the following adjustments to non-operating income and expense: a $1.0 million loss from currency remeasurement of our foreign operations; $0.5 million of loan fees; $0.1 million of fees related to new financing under our senior secured credit facility; and $(0.1) million of miscellaneous. For the nine months ended September 30, 2018, consisted of the following adjustments to non-operating income and expense: $12.0 million of fees related to new financing under our senior secured credit facility; a $3.3 million loss from currency remeasurement of our foreign operations; $1.1 million of loan fees; $0.5 million of fees incurred in connection with a secondary offering of shares of TransUnion common stock by certain of our stockholders; a $(0.7) million mark-to-market gain related to ineffectiveness of our interest rate hedge; and $(0.1) million of miscellaneous.

For the three months ended September 30, 2017, consisted of the following adjustments to operating income and expense: a $(1.3) million reduction to expense for certain legal and regulatory matters; and a $(0.6) million reduction to expense for sales and use tax matters. For the three months ended September 30, 2017, consisted of the following adjustments to non-operating income and expense: $5.6 million of fees related to the refinancing of our senior secured credit facility; $0.5 million of currency remeasurement of our foreign operations; $0.4 million of fees incurred in connection with a secondary offering of shares of TransUnion common stock by certain of our stockholders; $0.3 million of loan fees; and $0.1 million mark-to-market loss related to ineffectiveness of our interest rate hedge. For the nine months ended September 30, 2017, consisted of the following adjustments to operating income and expense: a $(1.3) million reduction to expense for certain legal and regulatory matters; and a $(0.6) million reduction to expense for sales and use tax matters. For the nine months ended September 30, 2017, consisted of the following adjustments to non-operating income and expense: $10.5 million of fees related to the refinancing of our senior secured credit facility; $1.4 million of fees incurred in connection with secondary offerings of shares of TransUnion common stock by certain of our stockholders; $1.1 million of loan fees; a $0.2 million mark-to-market loss related to ineffectiveness of our interest rate hedge; $(1.1) million of currency remeasurement of our foreign operations; and $(0.4) million of miscellaneous.

SCHEDULE 3

TRANSUNION AND SUBSIDIARIES

Adjusted Net Income and Adjusted Earnings Per Share - Unaudited

(in millions, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2018

2017

2018

2017

Net income attributable to TransUnion

$

46.3

$

68.8

$

174.4

$

196.0

Discontinued operations

1.4

—

1.4

—

Net income from continuing operations attributable to TransUnion

47.7

68.8

175.9

196.0

Adjustments before income tax items:

Acquisitions revenue-related adjustment (1)

17.7

—

17.7

—

Stock-based compensation(2)

16.3

9.5

43.2

34.3

Mergers and acquisitions, divestitures and business optimization(3)

6.2

(1.7)

35.3

5.2

Other(4)

1.0

4.8

15.0

9.2

Amortization of certain intangible assets(5)

52.1

33.7

127.0

100.8

Total adjustments before income tax items

93.4

46.3

238.2

149.5

Change in provision for income taxes per schedule 4

(16.4)

(22.4)

(63.1)

(84.4)

Adjusted Net Income

$

124.7

$

92.7

$

351.0

$

261.1

Adjusted Earnings per Share:

Basic

$

0.67

$

0.51

$

1.90

$

1.43

Diluted(6)

$

0.65

$

0.49

$

1.84

$

1.38

Weighted-average shares outstanding:

Basic

185.1

182.2

184.4

182.3

Diluted(6)

191.2

189.2

190.8

189.8

As a result of displaying amounts in millions, rounding differences may exist in the table above.

(1) This adjustment represents certain non-cash adjustments related to acquired entities, predominantly adjustments to increase revenue resulting from purchase accounting reductions to deferred revenue we record on the opening balance sheets of acquired entities. Deferred revenue results when a company receives payment in advance of fulfilling their performance obligations under contracts. Business combination accounting rules require us to record deferred revenue of acquired entities at fair value if we are obligated to perform any future services under these contracts. The fair value of this deferred revenue is determined based on the direct and indirect incremental costs of fulfilling our performance obligations under these contracts, plus a normal profit margin. Generally, this fair value calculation results in a reduction to the purchased deferred revenue balance. The above adjustment includes an estimate for the increase in revenue equal to the difference between what the acquired entities would have recorded as revenue and the lower revenue we record as a result of the reduced deferred revenue balance. This increase is partially offset by an estimated decrease to revenue for certain acquired non-core customer contracts that are not classified as discontinued operations that will expire within approximately one year. We present Adjusted Revenue as a supplemental measure of our revenue because we believe it provides meaningful information regarding our revenue and provides a basis to compare revenue between periods. In addition, our board of directors and executive management team use Adjusted Revenue as a compensation measure under our incentive compensation plan. The table above provides a reconciliation for revenue to Adjusted Revenue. The estimated adjustments to revenue are subject to change as we finalize the fair value assessments of the deferred revenue acquired with recent acquisitions and as we complete our assessment of the non-core customer contracts.

(3) For the three months ended September 30, 2018, consisted of the following adjustments to operating income: $4.2 million of Callcredit integration costs; a $0.2 million loss on the divestiture of a small business operation; and a $0.1 million adjustment to contingent consideration expense from previous acquisitions. For the three months ended September 30, 2018, consisted of the following adjustments to non-operating income and expense: $1.7 million of acquisition expenses; a $0.2 million loss from a fair value remeasurement of an investment in a nonconsolidated affiliate; a $(0.1) million offset to the loss included in operating income adjustments on the divestiture of a small business operation for the portion that is attributable to the non-controlling interest; and $(0.1) million of miscellaneous. For the nine months ended September 30, 2018, consisted of the following adjustments to operating income: $4.2 million of Callcredit integration costs and a $1.2 million loss on the divestiture of a small business operation; and a $0.1 million adjustment to contingent consideration expense from previous acquisitions. For the nine months ended September 30, 2018, consisted of the following adjustments to non-operating income and expense: $28.7 million of acquisition expenses; a $1.5 million net loss from the fair value remeasurements of investments in nonconsolidated affiliates; and a $(0.4) million offset to the loss included in operating income adjustments on the divestiture of a small business operation for the portion that is attributable to the non-controlling interest.

For the three months ended September 30, 2017, consisted of the following adjustments to operating income: a $0.4 million adjustment to contingent consideration expense from previous acquisitions. For the three months ended September 30, 2017, consisted of the following adjustments to non-operating income and expense: a $(2.0) million net reduction in acquisition expenses resulting from a reimbursement of certain acquisition costs recorded in prior periods partially offset by other acquisition costs; and $(0.1) million of miscellaneous. For the nine months ended September 30, 2017, consisted of the following adjustments to operating income: a $0.5 million loss on the divestiture of a small business operation; and a $0.2 million adjustment to contingent consideration expense from previous acquisitions. For the nine months ended September 30, 2017, consisted of the following adjustments to non-operating income and expense: $4.5 million of acquisition expenses.

(4) For the three months ended September 30, 2018, consisted of the following adjustments to non-operating income and expense: a $1.0 million loss from currency remeasurement of our foreign operations; $0.1 million of fees related to new financing under our senior secured credit facility; and $(0.1) million of miscellaneous. For the nine months ended September 30, 2018, consisted of the following adjustments to non-operating income and expense: $12.0 million of fees related to new financing under our senior secured credit facility; a $3.3 million loss from currency remeasurement of our foreign operations; $0.5 million of fees incurred in connection with a secondary offering of shares of TransUnion common stock by certain of our stockholders; a $(0.7) million mark-to-market gain related to ineffectiveness of our interest rate hedge; and $(0.1) million of miscellaneous.

For the three months ended September 30, 2017, consisted of the following adjustments to operating income: a $(1.3) million reduction to expense for certain legal and regulatory matters; and a $(0.6) million reduction to expense for sales and use tax matters. For the three months ended September 30, 2017, consisted of the following adjustments to non-operating income and expense: $5.6 million of expense related to the refinancing of our senior secured credit facility; $0.5 million of currency remeasurement of our foreign operations; $0.4 million of fees incurred in connection with a secondary offering of shares of TransUnion common stock by certain of our stockholders; a $0.1 million mark-to-market loss related to ineffectiveness of our interest rate hedge; and $0.1 million of miscellaneous. For the nine months ended September 30, 2017, consisted of the following adjustments to operating income and expense: a $(1.3) million reduction to expense for certain legal and regulatory matters; and a $(0.6) million reduction to expense for sales and use tax matters. For the nine months ended September 30, 2017, consisted of the following adjustments to non-operating income and expense: $10.5 million of fees related to the refinancing of our senior secured credit facility; $1.4 million of fees incurred in connection with secondary offerings of shares of TransUnion common stock by certain of our stockholders; a $0.2 million mark-to-market loss related to ineffectiveness of our interest rate hedge; $0.1 million of miscellaneous; and $(1.1) million of currency remeasurement of our foreign operations.

(5) Consisted of amortization of intangible assets from our 2012 change in control and amortization of intangible assets established in business acquisitions after our 2012 change in control.

(6) For the three and nine months ended September 30, 2018, there were less than 0.1 million anti-dilutive weighted stock-based awards outstanding for each respective period. In addition, there were less than 1.1 million contingently issuable stock-based awards outstanding that were excluded from the diluted earnings per share calculation because the contingencies had not been met.

For the three and nine months ended September 30, 2017, there were less than 0.1 million anti-dilutive weighted stock-based awards outstanding. In addition, there were no contingently issuable stock-based awards outstanding that were excluded from the diluted earnings per share calculation because the contingencies had not been met.

SCHEDULE 4

TRANSUNION AND SUBSIDIARIES

Effective Tax Rate and Adjusted Effective Tax Rate - Unaudited

(dollars in millions)

Three Months Ended September 30,

Nine Months Ended September 30,

2018

2017

2018

2017

Income before income taxes

$

79.4

$

104.2

$

255.6

$

272.3

Total adjustments before income taxes per Schedule 3

93.4

46.3

238.2

149.5

Adjusted income before income taxes

$

172.8

$

150.5

$

493.8

$

421.8

Provision for income taxes

$

(28.6)

$

(32.3)

$

(72.1)

$

(68.7)

Adjustments for income taxes:

Tax effect of above adjustments(1)

(16.1)

(16.0)

(50.2)

(50.7)

Eliminate impact of adjustments for unremitted foreign earnings(2)

—

(0.9)

—

(5.2)

Eliminate impact of excess tax benefits for share compensation(3)

(7.6)

(5.0)

(25.7)

(28.1)

Eliminate one-time impact of U.S. tax reform items(4)

5.6

—

5.6

—

Other(5)

1.8

(0.4)

7.2

(0.5)

Total adjustments for income taxes

(16.4)

(22.4)

(63.1)

(84.4)

Adjusted provision for income taxes

$

(45.0)

$

(54.7)

$

(135.2)

$

(153.1)

Effective tax rate

36.0

%

31.0

%

28.2

%

25.2

%

Adjusted Effective Tax Rate

26.0

%

36.4

%

27.4

%

36.3

%

As a result of displaying amounts in millions, rounding differences may exist in the table above.

(1) Tax rates used to calculate the tax expense impact are based on the nature of each item.

(4) Eliminates the one-time impacts of U.S. tax reform, including remeasurement of acquisition-related domestic deferred tax balances at the new 21% tax rate and mandatory repatriation of unremitted earnings net of previously recorded reserves.

(5) Eliminates the impact of state tax rate changes on deferred taxes, valuation allowances on foreign net operating losses, and valuation allowances on capital losses and other discrete adjustments.

As a result of displaying amounts in millions, rounding differences may exist in the table above.

(1) This adjustment represents certain non-cash adjustments related to acquired entities, predominantly adjustments to increase revenue resulting from purchase accounting reductions to deferred revenue we record on the opening balance sheets of acquired entities. Deferred revenue results when a company receives payment in advance of fulfilling their performance obligations under contracts. Business combination accounting rules require us to record deferred revenue of acquired entities at fair value if we are obligated to perform any future services under these contracts. The fair value of this deferred revenue is determined based on the direct and indirect incremental costs of fulfilling our performance obligations under these contracts, plus a normal profit margin. Generally, this fair value calculation results in a reduction to the purchased deferred revenue balance. The above adjustment includes an estimate for the increase in revenue equal to the difference between what the acquired entities would have recorded as revenue and the lower revenue we record as a result of the reduced deferred revenue balance. This increase is partially offset by an estimated decrease to revenue for certain acquired non-core customer contracts that are not classified as discontinued operations that will expire within approximately one year. We present Adjusted Revenue as a supplemental measure of our revenue because we believe it provides meaningful information regarding our revenue and provides a basis to compare revenue between periods. In addition, our board of directors and executive management team use Adjusted Revenue as a compensation measure under our incentive compensation plan. The table above provides a reconciliation for revenue to Adjusted Revenue. The estimated adjustments to revenue are subject to change as we finalize the fair value assessments of the deferred revenue acquired with recent acquisitions and as we complete our assessment of the non-core customer contracts. For the three- and nine-month periods the adjustment to revenue by segment were as follows: $1.1 million USIS; and $16.6 million International.

(3) For the three months ended September 30, 2018, consisted of the following adjustments to operating income: $4.2 million of Callcredit integration-related expenses (International); a $0.1 million loss on the divestiture of a small business operation (International); and a $0.1 million adjustment to contingent consideration expense from previous acquisitions (USIS). For the nine months ended September 30, 2018, consisted of the following adjustments to operating income: $4.2 million of Callcredit integration-related expenses (International); a $1.2 million loss on the divestiture of a small business operation (International); and a $0.1 million adjustment to contingent consideration expense from previous acquisitions (USIS).

For the three months ended September 30, 2017, consisted of the following adjustments to operating income: a $0.4 million adjustment to contingent consideration expense from previous acquisitions (USIS). For the nine months ended September 30, 2017, consisted of the following adjustments to operating income: a $0.5 million loss on the divestiture of a small business operation (International); and a $0.2 million adjustment to contingent consideration expense from previous acquisitions (USIS).

(4) For the three months ended September 30, 2017, consisted of the following adjustments to operating income: a $(1.3) million reduction to expense for certain legal and regulatory matters (Corporate); and a $(0.6) million reduction to expense for sales and use tax matters (USIS). For the nine months ended September 30, 2017, consisted of the following adjustments to operating income: a $(1.3) million reduction to expense for certain legal and regulatory matters (Corporate); and a $(0.6) million reduction to expense for sales and use tax matters (USIS).

(5) Consisted of amortization of intangible assets from our 2012 change in control transaction and amortization intangible assets established in business acquisitions after our 2012 change in control.

(6) Segment operating margins are calculated using segment gross revenue and operating income. Segment Adjusted Operating Margins are calculated using segment gross Adjusted Revenue and segment Adjusted Operating Income. Consolidated operating margin is calculated using total revenue as reported and operating income as reported. Consolidated Adjusted Operating Margin is calculated using total Adjusted Revenue and total Adjusted Operating Income.

SCHEDULE 6

TRANSUNION AND SUBSIDIARIES

Segment Depreciation and Amortization - Unaudited

(dollars in millions)

Three Months Ended September 30,

Nine Months Ended September 30,

2018

2017

2018

2017

Depreciation and amortization:

USIS

$

49.4

$

40.0

$

139.7

$

118.7

International

30.5

15.9

66.4

45.5

Consumer Interactive

3.1

2.7

9.0

8.1

Corporate

1.3

1.3

3.8

3.9

Total depreciation and amortization

$

84.2

$

59.9

$

218.8

$

176.2

As a result of displaying amounts in millions, rounding differences may exist in the table above.

SCHEDULE 7

TRANSUNION AND SUBSIDIARIES

Reconciliation of Non-GAAP Guidance - Unaudited

(dollars in millions)

Three Months Ended December 30, 2018

Twelve Months Ended December 31, 2018

Low

High

Low

High

Guidance reconciliation of revenue to Adjusted Revenue:

GAAP revenue

$

610

$

615

$

2,314

$

2,319

Acquisitions revenue-related adjustment(1)

11

11

28

28

Adjusted Revenue

620

625

2,342

2,347

Guidance reconciliation of net income attributable to TransUnion to Adjusted EBITDA:

Net income (loss) attributable to TransUnion

58

60

232

234

Discontinued operations, net of tax

(1)

(1)

—

—

Net income attributable to TransUnion from continuing operations

57

59

233

235

Interest, taxes and depreciation and amortization

152

152

531

532

EBITDA

208

211

764

767

Acquisitions revenue-related adjustment(1)

11

11

28

28

Stock-based compensation, mergers, acquisitions divestitures and business optimization-related expenses and other adjustments(2)

25

25

119

119

Adjusted EBITDA

$

243

$

246

$

912

$

915

Reconciliation of diluted earnings per share from continuing operations to Adjusted Diluted Earnings per Share from Continuing Operations:

Diluted earnings per share from continuing operations

$

0.30

$

0.31

$

1.22

$

1.23

Adjustments to diluted earnings per share(1)(2)

0.32

0.32

1.24

1.24

Adjusted Diluted Earnings per Share from Continuing Operations

$

0.62

$

0.63

$

2.46

$

2.47

As a result of displaying amounts in millions, rounding differences may exist in the table above.

(1) This adjustment represents certain non-cash adjustments related to acquired entities, predominantly adjustments to increase revenue resulting from purchase accounting reductions to deferred revenue we record on the opening balance sheets of acquired entities. Deferred revenue results when a company receives payment in advance of fulfilling their performance obligations under contracts. Business combination accounting rules require us to record deferred revenue of acquired entities at fair value if we are obligated to perform any future services under these contracts. The fair value of this deferred revenue is determined based on the direct and indirect incremental costs of fulfilling our performance obligations under these contracts, plus a normal profit margin. Generally, this fair value calculation results in a reduction to the purchased deferred revenue balance. The above adjustment includes an estimate for the increase in revenue equal to the difference between what the acquired entities would have recorded as revenue and the lower revenue we record as a result of the reduced deferred revenue balance. This increase is partially offset by an estimated decrease to revenue for certain acquired non-core customer contracts that are not classified as discontinued operations that will expire within approximately one year. We present Adjusted Revenue as a supplemental measure of our revenue because we believe it provides meaningful information regarding our revenue and provides a basis to compare revenue between periods. In addition, our board of directors and executive management team use Adjusted Revenue as a compensation measure under our incentive compensation plan. The table above provides a reconciliation for revenue to Adjusted Revenue. The estimated adjustments to revenue are subject to change as we finalize the fair value assessments of the deferred revenue acquired with recent acquisitions and as we complete our assessment of the non-core customer contracts.

(2) This adjustment includes the same adjustments we make to our Adjusted EBITDA and Adjusted Net Income as discussed in the Non-GAAP Financial Measures section of our earnings release, which includes the Callcredit integration-related costs.

Callcredit Exhibit 99.2

Reconciliation of Adjusted Revenue and Adjusted EBITDA

(amounts in millions)

The tables below present a reconciliation of the revenue and operating income (loss) of Callcredit, as reflected in Note 2 of the financial statements included in our Form 10-Q filed with the SEC on October 23, 2018, to the non-GAAP measures of Adjusted Revenue and Adjusted EBITDA, respectively, for the nine months ended September 30, 2018.

Reconciliation of revenue to Adjusted Revenue:

YTD September 30, 2018

Callcredit revenue per Note 2 to the accompanying financial statements

$

35.9

Add-backs:

Deferred revenue fair value impact(1)

17.7

Deductions:

Revenue from non-core customer contracts(2)

(1.1)

Callcredit Adjusted Revenue

$

52.5

Due to displaying amounts in millions, the table above may not foot.

Footnotes:

(1) Represents an adjustment to reflect the amount of revenue that would have been recognized, had deferred revenue not been reduced to estimated fair value in accordance with the acquisition method of accounting under U.S. GAAP.

(2) Represents an adjustment to reduce post-acquisition revenue from certain non-core customer contracts of Callcredit that are not classified as discontinued operations and that will expire within approximately one year.

Reconciliation of operating income (loss) to Adjusted EBITDA:

YTD September 30, 2018

Callcredit operating income (loss) per Note 2 to the accompanying financial statements

$

(18.9)

Add-backs:

Deferred revenue fair value impact(1)

16.6

Depreciation and amortization

15.5

Integration costs(2)

4.2

Adjusted EBITDA

$

17.4

Adjusted EBITDA margin

33.1

%

Due to displaying amounts in millions, the table above may not foot.

Footnotes:

(1) Represents an adjustment to reflect the amount of revenue that would have been recognized, had deferred revenue not been reduced to estimated fair value in accordance with the acquisition method of accounting under U.S. GAAP, partially offset by a decrease to revenue for certain acquired non-core customer contracts that are not classified as discontinued operations that will expire within approximately one year.

(3) Represents an adjustment to reduce post-acquisition operating income from certain non-core customer contracts of Callcredit that are not classified as discontinued operations and that will expire within approximately one year.

The tables below present a reconciliation of the combined pro forma revenue and pro forma net income of continuing operations of TransUnion and Callcredit, as reflected in Note 2 of the financial statements included in our Form 10-Q filed with the SEC on October 23, 2018, to pro forma Adjusted Revenue and pro forma Adjusted EBITDA for the nine months ended September 30, 2018 and 2017, assuming TransUnion's acquisition of Callcredit occurred on January 1, 2017.

Reconciliation of Revenue to Adjusted pro forma revenue:

YTD September 30, 2018

YTD September 30, 2017

Pro forma revenue per Note 2 to the accompanying financial statements

$

1,791.8

$

1,516.5

Adjustments:

Deferred revenue fair value impact(1)

18.4

36.8

Revenue from non-core customer contracts(2)

(2.1)

(3.1)

Pro forma Adjusted Revenue

$

1,808.1

$

1,550.2

Due to displaying amounts in millions, the table above may not foot.

Footnotes:

(1) Represents and adjustment for pre- and post-acquisition revenue that would have been recognized, had deferred revenue not been reduced to estimated fair value in accordance with the acquisition method of accounting under U.S. GAAP.

(2) Represents an adjustment to reduce pre- and post-acquisition revenue from certain non-core customer contracts of Callcredit that are not classified as discontinued operations and that will expire within approximately one year.

Reconciliation of net income from continuing operations to pro formaAdjust Net Income from Continuing Operations:

YTD September 30, 2018

YTD September 30, 2017

Pro forma net income from continuing operations per Note 2 to the accompanying financial statements

$

165.8

$

50.7

Net interest expense

122.0

103.7

Provision for income taxes

84.7

44.2

Depreciation and amortization

245.1

216.0

Pro Forma EBIDTA

617.6

414.6

Adjustments:

Deferred revenue fair value impact(1)

18.5

36.8

Stock-based compensation(2)

43.2

34.2

Mergers and acquisitions, divestitures and business optimization(3)

3.5

84.9

Other(4)

17.7

21.1

Total adjustments

82.9

177.0

Pro forma Adjusted EBITDA

$

700.5

$

591.6

Pro forma Adjusted EBITDA margin

38.7

%

38.2

%

Due to displaying amounts in millions, the table above may not foot.

Footnotes:

(1) Represents all of the pro forma adjustments as reflected in Exhibit 99.2 of our Form 8-K filed with the SEC on August 27, 2018, and similar adjustments for the second and third quarters of 2018.

(3) Consists of the adjustments included in footnote 3 of Schedule 2 of Exhibit 99.1 of this Form 8-K and additional similar adjustments of Callcredit prior to the date of acquisition.

(4) Consists of the adjustments included in footnote 4 of Schedule 2 of Exhibit 99.1 of this Form 8-K and additional similar adjustments of Callcredit prior to the date of acquisition.

]]>TRUTue, 23 Oct 2018 05:50:00 -0500https://content.presspage.com/uploads/1104/500_162876539.jpg?10000Home Equity Borrowing Poised to Soar http://newsroom.transunion.com/home-equity-borrowing-poised-to-soar/
http://newsroom.transunion.com/home-equity-borrowing-poised-to-soar/TransUnion study determines need to understand how consumers may use such loansA surge in home equity borrowing may soon be on the horizon. A new TransUnion (NYSE: TRU) study found that several dynamics are creating a market ripe for home equity origination growth, but a better understanding of how consumers use these loans may impact their interest in securing one. The findings from the study were released today at the Mortgage Bankers Association Annual Convention & Expo.

A major reason for expected growth in home equity borrowing is the fact that household home equity, currently nearing $15 trillion, has surpassed its prior “housing bubble” peak in Q1 2006 by over $1 trillion. Home equity is the difference between a home’s fair market value and the outstanding balance of all liens on the property.

Home equity levels have been rising at a rapid rate each year since hovering around $6 trillion between 2009 and 2011. While the S&P/Case-Shiller House Price Index (HPI) increased by 42% between Q1 2011 and Q1 2018, home equity levels outpaced home prices in that same timeframe.

“There are ample signs that the home equity lending market is poised for growth. Home prices have surpassed 2005 boom levels and household home equity has grown even faster,” said Joe Mellman, senior vice president and mortgage business leader at TransUnion. “Increasing consumer debt makes debt consolidation an appealing option and home equity can be the most economically attractive path to do just that. The recession caused a home equity lending pull-back, which all but eliminated consumer marketing and education. We think there’s an opportunity to re-introduce that education to consumers and help them evaluate how and when tapping home equity could make sense.”

These new market dynamics may begin to accelerate the home equity loan market. HELOCs represented the greatest number of home equity originations in 2017 at 1.2 million, showing a 2.3% year-over-year growth from 2016. This presents a market opportunity for lenders as HELOCs have extremely low vintage default rates and an estimated 70 million homeowners likely qualify for a home equity product.

“With rising interest rates and increases in home prices outpacing wage growth, homeowners are more likely to stay in their current homes, rather than ‘move up.’ This leads to a higher likelihood of improving their existing home and home equity can be great tool for that,” added Mellman.

Home Equity Loan Usage and its Impact on Such Offers

In addition to identifying the trend that consumers are utilizing more home equity products, the TransUnion study determined that usage of home equity products can be broken down into five categories -- and further estimated how originations distributed across these categories.

Furthermore, TransUnion predicted the usage consumers were most likely motivated by. This, in turn, can allow lenders to provide consumers with customized offers that speak to their specific needs.

Top Five Uses of Home Equity Products

Home Equity Product Use

Description

Percent Using* (segments are not mutually exclusive)

Major Expense

Take cash out, often for a large expense like home remodeling

91%

Debt Consolidation

Consolidate balances from other credit products

41%

Refinance

Refinance to get a better rate or term

23%

Piggyback

Concurrent with a mortgage origination, often used for down payment

4%

Undrawn

Not used immediately (e.g. “rainy day fund”).

2%

*Note: This percentage is based on 2.4 million home equity loans originated between July 2016 and June 2017.

“In today’s consumer-centric marketplace, consumers expect personalized offers addressing their specific needs. Studies show consumers are much less likely to find value in generic messaging and education. Utilizing a personalized marketing approach addressing specific usages consumers have in mind can help ensure a strong relationship between consumer and lender,” concluded Mellman.

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

We call this Information for GoodSM.

]]>Wed, 17 Oct 2018 05:00:00 -0500https://content.presspage.com/uploads/1104/500_168731507.jpg?10000TransUnion Expands Healthcare Solutions with Agreement to Acquire Rubixishttp://newsroom.transunion.com/transunion-expands-healthcare-solutions-with-agreement-to-acquire-rubixis/
http://newsroom.transunion.com/transunion-expands-healthcare-solutions-with-agreement-to-acquire-rubixis/Denials and underpayments capabilities will make TransUnion Healthcare a holistic solution for revenue recoveryTransUnion (NYSE: TRU) has announced an agreement to acquire Rubixis, an innovative healthcare revenue cycle solutions company that helps providers maximize reimbursement from insurance payers. Rubixis brings specialized expertise in the management of denials and underpayments, two significant pain points for healthcare providers.

“The addition of Rubixis builds on TransUnion Healthcare’s market-leading Healthcare Revenue ProtectionSM solutions in line with our growth strategy of extending into attractive markets,” said Jim Peck, TransUnion’s president and chief executive officer. “Rubixis’ revenue cycle optimization capabilities, particularly around denials and underpayments, round out TransUnion Healthcare’s solutions and positions us as the leader in post-discharge revenue recovery for healthcare providers seeking to maximize reimbursement and prevent revenue leakage.”

The healthcare industry continues to struggle with claims denial write-offs, which have climbed consistently over the past decade. Denial write-off adjustments average 3 to 4% of net revenue, which equates to $262 billion in initially denied claims for healthcare providers annually.1, 2

Rubixis helps healthcare providers prevent these losses with the goal of collecting the correct amount due from payers as quickly as possible and at the lowest cost. By offering a robust software platform that leverages analytics, workflow tools and/or complementary accounts receivable outsourcing services, Rubixis helps healthcare providers collect reimbursement effectively and efficiently.

“Rubixis brings impressive solutions that are a great complement to TransUnion Healthcare’s existing portfolio,” said Dave Wojczynski, president of TransUnion Healthcare. “Together, we will offer powerful data, analytics and capabilities that will benefit providers by helping to maximize reimbursement and ultimately improve the patient financial experience.”

TransUnion Healthcare’s Revenue Protection solutions help hospitals prevent revenue leakage by engaging patients early, ensuring that their earned revenue gets paid, and optimizing their collection strategies. The company works with more than 1,800 hospitals and health systems and has protected over $4.4 billion in net revenue and cash to date for its entire client base. With the acquisition of Rubixis, in addition to the recent purchase of Healthcare Payment Specialists, TransUnion now offers the most comprehensive revenue cycle management solution set in the market – including identity verification, insurance eligibility, patient payment estimation, insurance coverage discovery, Medicare bad debt and DSH (disproportionate share hospital), transfer DRG (diagnosis related groups), denials, underpayments and financial clearance.

“Joining TransUnion is a great fit for Rubixis,” said Manoj Sharma, chief executive officer of Rubixis. “We look forward to working together to deliver even greater innovation and solutions for our customers.”

The transaction is expected to close upon the satisfaction of customary closing conditions.

Healthcare Financial Management Association

Change Healthcare Healthy Hospital Revenue Cycle Index

About TransUnion Healthcare

TransUnion Healthcare, a wholly owned subsidiary of credit and information management company TransUnion, is a trusted provider of Healthcare Revenue Protection™ solutions for maximizing reimbursement, improving patient engagement, and preventing revenue leakage. We deliver this by leveraging our data assets, market-leading revenue cycle management technologies, and deep insights into consumer financial behavior and reimbursement methodologies to help providers reduce uncompensated care and maximize revenue with one of the most effective revenue protection solutions on the market today. www.transunionhealthcare.com

About TransUnion (NYSE:TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

Founded in 2012 and based in Fremont, California, Rubixis offers healthcare providers an integrated revenue cycle analytical platform and accounts receivable outsourcing services to maximize reimbursement, reduce accounts receivable days and lower costs.

]]>TRUWed, 10 Oct 2018 05:48:00 -0500https://content.presspage.com/uploads/1104/500_projectcube.jpg?10000TransUnion Receives Outstanding Company Culture Awardhttp://newsroom.transunion.com/transunion-receives-outstanding-company-culture-award/
http://newsroom.transunion.com/transunion-receives-outstanding-company-culture-award/TransUnion (NYSE: TRU) announced today that the company was awarded the 19th Annual ITA (Illinois Technology Association) CityLIGHTS Award for “Outstanding Company Culture.” The 19th Annual ITA CityLIGHTS Awards is the premier annual event in the region that elevates and honors achievements from the local technology community.

The Outstanding Company Culture Award goes to companies that have instilled a high-performance culture in their workplace by encouraging employees to take their career to the next level, fostering diversity and inclusion, and are committed to positively contributing to the community.

”TransUnion is honored to be recognized by the Illinois Technology Association for our commitment to our people and culture,” said Mohit Kapoor, Executive Vice President and Chief Information and Technology Officer at TransUnion. “Our team is passionate about using information to make a positive impact on the world, and TransUnion is committed to providing meaningful career opportunities and an inclusive work environment to help our people succeed.”

The global technology group at TransUnion creates and supports innovative information solutions that empower people and organizations around the world to make informed decisions. The technology group has experienced immense growth in the last year. The Chicago office has seen a 27% increase in technology associates during the past year. In total, TransUnion’s technology team now has more than 2,000 full-time employees across the globe.

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

]]>Thu, 04 Oct 2018 06:00:00 -0500https://content.presspage.com/uploads/1104/500_20170926-tu-3392.jpg?10000Profits v. Risk Management: Striking the Delicate Balance Between Customer Experience and Fraud Preventionhttp://newsroom.transunion.com/profits-v-risk-management-striking-the-delicate-balance--between-customer-experience-and-fraud-prevention/
http://newsroom.transunion.com/profits-v-risk-management-striking-the-delicate-balance--between-customer-experience-and-fraud-prevention/Studies commissioned by TransUnion released as synthetic fraud balances surpass $1 billionStriking the delicate balance between customer experience and fraud prevention is not an easy feat. This was a common theme among newly released Forrester Consulting global studies exploring fraud in the financial services, insurance and single and multi-family rental industries.

TransUnion commissioned Forrester to conduct studies focusing on these industries in the August/September 2018 timeframe. Each study can be downloaded at the TransUnion Fraud Trends 2018 website. Register for a webinar to learn more details about the financial services and insurance studies here.

The studies come at a time when TransUnion’s own proprietary fraud data found that outstanding balances of suspected synthetic fraud for auto loans, bankcards, retail cards and personal loans have now surpassed $1 billion as of Q2 2018. Insurers and large and small property managers also face new fraud schemes as the prevalence of online applications continues to rise.

Increases in fraud are corroborated by the research conducted by Forrester.

Nearly all financial services firms (94%) in the study recognized that they have experienced some sort of fraud, whether it’s identity theft/new account fraud, synthetic identity fraud, or account takeover fraud in the past two years.

Almost two-thirds of insurance companies (62%) have seen an increase in soft fraud and 57% have seen an increase in identity fraud in the past year.

Virtually all property management companies (97%) have experienced fraud in the properties they manage in the past two years.

“It’s clear that a major hurdle for decision makers in industries such as financial services, insurance and the rental market is how to fight fraud while ensuring prospective customers have a good experience. Consumers are demanding a better experience and those businesses that are not delivering on this are losing out to their competitors,” said Geoff Miller, head of global fraud and identity solutions for TransUnion. “It’s also apparent that many of the same fraud issues that plague American financial services and insurance companies are impacting similar businesses in Canada, India and likely other countries around the world.”

Exceptional customer experience is critical for most decision makers featured in the studies. Nearly three in four financial services firms (71%) said customer expectations influence the methods they use to detect fraud. About two-thirds (65%) of insurance professionals agree that the tactics they have in place to weed out fraudsters can negatively impact their good customers.

Executives also lamented that a major problem in fraud prevention and detection is that many fraud solutions lack the flexibility to adjust in real time. As well, the end user verification process is too complicated, resulting in poor customer experience.

“To effectively fight fraud, businesses cannot wait days, hours or even minutes to make the right decision. They need effective tools that utilize evolving, overlapping networks of physical and digital risk signals that will inevitably help both businesses and the consumers they serve,” said Miller.

Forrester study participants included 465 decision makers from the financial services, insurance and property management industries. Executives from the United States, Canada and India participated in the financial services and insurance studies while leaders from the United States contributed to the property management research.

More information about the Forrester studies can be found here. Continue to read for in-depth study highlights about the insurance, financial services and single and multi-family rental industries.

“The types of fraud we see in the insurance industry have serious economic implications for both insurance providers and their customers,” said Mark McElroy, executive vice president and head of TransUnion’s insurance business unit. “Customers are demanding exceptional experiences throughout the insurance process. This means that false alerts, detection, prevention procedures and the investigations that go with it can negatively impact their customer experience.”

As more consumers expect to receive frictionless, high quality interactions, fraud continues to threaten insurance firms. In fact, 49% of insurers are not confident in their ability to detect soft fraud, 40% are not confident in their ability to detect identity fraud, and 55% are not confident in their ability to detect hard fraud.

The study also revealed that in the past year:

62% of insurance firms saw an increase in soft fraud;

57% saw an increase in identity fraud;

34% saw an increase in hard fraud.

“Every stage of the customer journey is susceptible to fraud, but identifying the types of fraud and detecting it as early as possible is key,” said McElroy. “Misidentified or undetected fraud can have a major impact to insurers’ reputations and ultimately their bottom line.”

When insurance carriers were asked “What impact does fraud have on your business?”

57% cited damage to brand/reputation;

52% cited fines/lawsuits for non-compliance with regulations;

49% cited fraud loss write-offs.

While fraud is hard to eliminate completely as fraudsters evolve their tactics, there are ways to alleviate fraud risk in the insurance industry. It’s important for insurers to combat fraud by arming themselves with solutions that bridge the gap between customer experience and fraud prevention.

“Taking a pre-emptive strike against insurance fraud will serve to help prevent bad debt, fraudulent claims and losses down the road,” McElroy concluded.

Increase in Digital Intensifying Rise in Financial Services Fraud

The Forrester financial services study, “Fraud Detection and ID Verification in Financial Services,” found that fraud is a widespread issue in the industry with 94% of firms experiencing some sort of fraud in the past two years. Not only is the fraud becoming increasingly more difficult to prevent and detect, it poses a new challenge to financial institutions – how to maintain a competitive edge without sacrificing the customer experience.

Approximately 70% of financial services firms reported their customers prefer to use digital channels over other channels. While this trend is nothing new, the shift in consumer behavior has made way for new types of fraud to emerge. Financial institutions now encounter fraudulent activity such as synthetic fraud and loan stacking, where sophisticated technological capabilities such as real-time insights, machine learning and predictive analytics are necessary to flag the suspicious activity, quickly.

What types of fraud, if any, has your company experienced in the past two years?

“Consumer behaviors are changing; savvy fraudsters have recognized that and they have evolved their tactics to mimic those of legitimate customers,” said Steve Chaouki, executive vice president and head of TransUnion’s financial services business unit. “Financial institutions need to ensure their legacy systems are keeping up with fraudulent activity without negatively impacting their customer experience.”

To combat the rise in digital fraud, advanced technologies are needed to identify red flags at the first warning sign. The majority of fraud tools, however, do not bring both fraud detection and ID verification solutions into one seamless experience. Nearly six in 10 decision-makers noted that their company currently has three or more fraud detection or ID verification solutions – yet less than one-third are confident in their ability to identify fraud.

The study also found that customer experience correlates strongly with brand loyalty and the likelihood of consumers coming back for more products. Customers have also come to expect that every digital interaction, customer service call and application process should be seamless and consistent.

More than half (54%) of financial institutions indicated that their current identity verification and fraud detection processes are too complex and burdensome – not only for customers to conduct transactions, but also for the organization to maintain. Furthermore, half of financial institutions are not satisfied with the capabilities that they currently have in place.

“When financial services customers feel they are burdened with extra steps to verify their identity, it increases abandonment and reduces future engagement,” said Chaouki. “A poor verification experience can turn away good customers and increase the risk of customer defection and lost revenue.”

The implications of fraud can be felt across the business, with high costs for victim remediation, fraud loss and legal complications for non-compliance. Financial institutions must take all of these factors into account while also keeping costs down. Forrester estimates that fraud claims 2.39% of revenue for financial services firms, costing companies billions every year.

These forms of fraud include synthetic, digital and true name fraud. Synthetic fraud, in particular, has become a new weapon of choice as fraudsters can use manufactured identities during the application process. Unless sophisticated technology is in place to flag suspicious information as part of the verification process, the fraud may not be realized until months after approval.

The impact of such fraud is real. More than eight out of 10 decision makers at property management companies have experienced fraud up to 20 times within the past two years.

The study found that the advent of online rental applications is a primary driver for the fraud that exists in the rental housing industry today. Online applications are now outpacing those that are submitted in-person, with nearly 59% of applications taking place online. As a result, more than half of property management companies surveyed identify online applicant-based fraud as a critical or near-critical issue.

“As the rental housing industry continues to move to a digital application process, we are working closely with many property managers to better understand the new risks that are out there,” said Mike Doherty, senior vice president in TransUnion’s rental screening business. “It’s critical that they are more effective in getting the right renters as this will reduce involuntary turnover cost while increasing cost efficiency.”

Please click here to secure the complete Forrester studies on the financial services, insurance and the single and multi-family rental industries.

About TransUnion (NYSE:TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

]]>TransUnion,credit card,auto,financial services,fraudWed, 26 Sep 2018 05:00:00 -0500https://content.presspage.com/uploads/1104/500_xxxxxx-fraud-newsroom-banner-819x491-v1-fraudyellow.jpg?10000World Consumer Credit Reporting Conference Focuses on Financial Inclusion, Data Security and the Future of Credit Marketshttp://newsroom.transunion.com/world-consumer-credit-reporting-conference-focuses-on-financial-inclusion--data-security-and-the-future-of-credit-markets/
http://newsroom.transunion.com/world-consumer-credit-reporting-conference-focuses-on-financial-inclusion--data-security-and-the-future-of-credit-markets/Top leaders representing financial services and credit reporting organizations from around the world are meeting at the World Consumer Credit Reporting Conference (WCCRC) held in New Delhi, India, to learn more about the changes that are occurring in their markets.

Among the key topics being addressed at the conference is how data and new technology are helping support financial inclusion in developing markets – an important factor for all international economies. Globally, about 1.7 billion adults remain “unbanked”, according to the World Bank Group. That means that these adults are without an account at a financial institution or a mobile money provider.

“At a global level, financial inclusion is a key concern,” said Neil Munroe, conference director of the WCCRC. “More information and new technology is facilitating access to financial services for millions and as a result enabling them to improve their quality of life. Providing individuals and small businesses with more access to purchasing power and the ability to better manage their finances is a key enabler for the economic development of all countries.”

TransUnion (NYSE: TRU), a leading global information solutions provider headquartered in Chicago, is one of three primary supporters of this global forum, along with the Association of Consumer Credit Information Suppliers (ACCIS) and the Consumer Data Industry Association (CDIA).

CDIA is the voice of the consumer reporting industry, which represents consumer reporting agencies including the nationwide credit bureaus, regional and specialized credit bureaus, residential screening companies, background check companies, and others. ACCIS represents the largest group of credit reference agencies in the world. ACCIS brings together 40 members across 27 European countries and 8 associate and affiliate members from all other continents.

At the conference, TransUnion will be presenting a case study about the importance of financial inclusion with examples that show how alternative data is creating more credit access for consumers.

For example, South Africa services only 70% of the economically active population because there is not enough credit data on individuals. TransUnion has been able to address this market by providing access to alternative data sources such as:

Telco data

Commercial

Property data

Vehicle ownership

“Utilizing new and innovative data sources enabled by technology we can give people more power, allowing them access to a wider number of options,” said David Neenan, President of International for TransUnion. “This ‘consumer first’ philosophy is why TransUnion has built tools and safeguards that consumers can use to manage their credit and protect their identities. This is just one of the key initiatives that will drive the credit reporting industry of the future.”

The 2018 World Consumer Credit Reporting Conference (WCCRC) is a three-day conference that will be held in New Delhi, India on September 23-25, 2018. Designed for senior executives representing credit reporting organizations from around the world, along with representatives of lenders, regulators and government officials, conference delegates will participate in a comprehensive agenda to address and debate the most critical and topical issues for the credit reporting industry, both now and in the future.

This eleventh World Consumer Credit Reporting Conference will be hosted by joint partners, the Association of Consumer Credit Information Suppliers (ACCIS), the Consumer Data Industry Association (CDIA), and TransUnion (TU).Approximately 250 delegates from over 60 countries are expected to attend conference, and include individuals that are both relatively new to the consumer credit market or have a detailed background in credit reporting.

About TransUnion (NYSE:TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

]]>Mon, 24 Sep 2018 02:00:00 -0500https://content.presspage.com/uploads/1104/500_228825619.jpg?10000TransUnion’s NIST-Compliant Identification Managed Services Among First to be Awarded GSA’s Approved Status Designationhttp://newsroom.transunion.com/transunions-nist-compliant-identification-managed-services-among-first-to-be-awarded-gsas-approved-status-designation/
http://newsroom.transunion.com/transunions-nist-compliant-identification-managed-services-among-first-to-be-awarded-gsas-approved-status-designation/TransUnion (NYSE: TRU) today announced that following an extensive evaluation by the General Services Administration (GSA), it has been awarded a GSA login.gov blanket purchase agreement contract vehicle. The contract will be extended to multiple federal government agencies for TransUnion’s remote identification and fraud prevention managed services and data analytics solutions.

As cyber risks continually evolve and compromise the identifiers and passwords of millions of Americans, TransUnion has made it a priority to serve the government with an accurate and resilient remote identity proofing solution that covers the U.S. population.

“Federal identity verification is a core TransUnion capability which is particularly important to government to reduce fraud and to also offer positive, low friction experiences to constituents,” said Jonathan McDonald, executive vice president of TransUnion’s government information solutions business unit. “We are particularly proud to enable these objectives with innovative approaches that have been recognized by public sector as well as within Javelin Strategy & Research’s coverage of Remote Identity Proofing.”

TransUnion received one of the GSA’s first contract awards after its IDVision managed services were evaluated for a combination of capabilities and price. A combination of product and supporting service attributes include real-time identity verification, device evaluation, financial account confirmation, and Government ID validation among others.

TransUnion’s Government Information Solutions division provides fraud, benefit eligibility verification, continuous evaluation services, identity authentication, data breach response, investigation services, and other key solutions to federal, state and local government agencies in the U.S. TransUnion’s solutions help both private and public sector organizations manage risk and reduce costs.

About TransUnion (NYSE: TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

]]>Tue, 18 Sep 2018 08:25:00 -0500https://content.presspage.com/uploads/1104/500_66384109.jpg?10000TransUnion Announces Earnings Release Date for Third Quarter 2018 Resultshttp://newsroom.transunion.com/transunion-announces-earnings-release-date-for-third-quarter-2018-results/
http://newsroom.transunion.com/transunion-announces-earnings-release-date-for-third-quarter-2018-results/TransUnion (NYSE: TRU) will publish its financial results for the third quarter ending September 30, 2018, in a press release to be issued at 6:00 a.m. Central Time (CT) on Tuesday, October 23, 2018. The company will hold a conference call on the same day at 8:00 a.m. Central Time (CT) to discuss its quarterly financial results. The press release and a live webcast of the earnings conference call will be available on the TransUnion Investor Relations website at http://www.transunion.com/tru.

About TransUnion

TransUnion is a leading global risk and information solutions provider to businesses and consumers. The company provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. Businesses embed its solutions into their process workflows to acquire new customers, assess consumer ability to pay for services, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud. Consumers use its solutions to view their credit profiles and access analytical tools that help them understand and manage their personal information and take precautions against identity theft. www.transunion.com

]]>TRUTue, 18 Sep 2018 05:50:00 -0500https://content.presspage.com/uploads/1104/500_162876539.jpg?10000Only 15 Percent of Americans Feel They Have the Tools Needed to Protect Their Personal Data, Survey Findshttp://newsroom.transunion.com/majority-of-americans-feel-accountable-for-protecting-their-personal-data-but-only-15-percent-feel-they-have-the-tools-they-need-to-do-so/
http://newsroom.transunion.com/majority-of-americans-feel-accountable-for-protecting-their-personal-data-but-only-15-percent-feel-they-have-the-tools-they-need-to-do-so/TransUnion Outlines Consumer Concerns in National Survey, Introduces New Mobile App to Empower ConsumersTransUnion (NYSE: TRU), a leading global risk and information solutions provider, today announced key survey findings that reveal personal data security is increasingly top of mind for people, and most consumers feel unprepared to deal with it. Seventy-five percent of respondents indicated they have become more concerned about data breaches in the past year. More than 50 percent think they are vulnerable to identity theft and credit card fraud, and more than 75 percent of respondents know someone who has been affected by a fraud or data breach. However, only 15 percent of respondents feel highly confident they have the tools they need to protect themselves from fraud and data breaches.

To provide consumers with a free resource for protection, TransUnion recently launched an app called myTransUnion. The new mobile app allows consumers to quickly and easily freeze and unfreeze their credit reports for free in a matter of seconds, whenever they need, right from their pocket. A credit freeze protects consumers by preventing lenders from checking a credit report to open a new account – which can prevent fraudsters from opening an account in a consumer’s name and also prevents credit information from being released for certain other inquiries. myTransUnion is available for download from the Apple App Store and Google Play Store.

TransUnion is introducing the app in time for consumers to take advantage of the “free freeze” law that goes into effect on September 21, 2018. In May 2018, the Economic Recovery, Regulatory Relief, and Consumer Protection Act was signed into law requiring that consumers be given the ability to place and remove a freeze on their credit files -- for free. TransUnion applauds this law as an important step forward in empowering consumers with the tools they need to understand and manage their credit and protect their personal information.

“As personal data protection becomes an increasingly growing concern, we are more passionate than ever about encouraging consumers to take action,” said John Danaher, President, Consumer Interactive. “That’s why we are continually building our portfolio of tools to help prevent fraud and data breach.”

It is this portfolio that empowers consumers by offering different options to meet their needs. Danaher noted, “Through the years, we’ve given consumers the power to protect their credit and their data through an array of innovative services and products, many of which are free.

TrueIdentity is one example that gives millions of consumers the ability to lock and unlock their credit with a single swipe while also providing insurance for identity theft. And earlier this year we were the first to provide alerts in our consumer products that notify consumers with a locked credit report that a fraudster has attempted and been stopped from applying for credit in their name.”

According to the company’s latest survey, many Americans have experienced a fraud and/or data breach, with 54 percent of respondents indicating that they have been a victim at least once. Further, one in five of those victims reported they have been a victim more than once in the last 18 months.

“Data security can feel daunting,” Danaher added. “That is why we’re thrilled to introduce our new myTransUnion app which makes it easier than ever before to protect your credit information.”

TransUnion conducted an online survey of 1,000 nationally representative US adults ages 18+, fielded by IPSOS in August 2018.

About TransUnion (NYSE:TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide. We call this Information for GoodSM.

]]>Mon, 17 Sep 2018 08:51:31 -0500https://content.presspage.com/uploads/1104/500_25924094.jpg?10000Renters Gain Easier Access to Properties With TransUnion and Invitation Homes Partnershiphttp://newsroom.transunion.com/renters-gain-easier-access-to-properties-with-transunion-and-invitation-homes-partnership/
http://newsroom.transunion.com/renters-gain-easier-access-to-properties-with-transunion-and-invitation-homes-partnership/The search for home sweet home just got easier. TransUnion (NYSE: TRU) announced today it has partnered with the nation’s premier single family home leasing company, Invitation Homes (NYSE: INVH), to make finding and leasing a home a more seamless experience.

As part of the partnership, Invitation Homes will use TransUnion’s ResidentIDSM product as an authentication tool to enable its self-showing option for prospective residents.

The enhanced screening process authenticates prospective residents prior to their gaining access to the home and allows operators to verify online identities and attempt to detect fraudulent applications without impacting the speedy approval of qualified applicants.

“TransUnion has been a great partner for us,” said Charles Young, Chief Operating Officer at Invitation Homes. “We pride ourselves on providing a high-quality experience to residents throughout their entire journey with Invitation Homes. TransUnion has helped make the leasing phase of that journey even more convenient for prospective residents and even more efficient for Invitation Homes.”

Invitation Homes offers high-quality homes for lease in desirable neighborhoods across America. With over 80,000 homes for lease in 17 different markets, residents have access to homes with features they value, such as close proximity to jobs and access to good schools.

“We are thrilled to have Invitation Homes on board and offer a comprehensive rental screening solution that fulfills their needs,” said Maitri Johnson, vice president and rental screening business lead at TransUnion. “With these tools, property managers will be able to score more residents and make clear decisions with complete confidence.”

About TransUnion (NYSE:TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

Invitation Homes is a leading owner and operator of single-family homes for lease, offering residents high-quality homes across America. With more than 80,000 homes for lease in 17 markets across the country, Invitation Homes is meeting changing lifestyle demands by providing residents access to updated homes with features they value, such as close proximity to jobs and access to good schools. The company's mission, "Together with you, we make a house a home," reflects its commitment to high-touch service that continuously enhances residents' living experiences and provides homes where individuals and families can thrive.

]]>Thu, 13 Sep 2018 05:00:00 -0500https://content.presspage.com/uploads/1104/500_239648071.jpg?10000Forbes Names TransUnion to Best Regarded Companies of 2018 Listhttp://newsroom.transunion.com/forbes-names-transunion-to-best-regarded-companies-of-2018-list/
http://newsroom.transunion.com/forbes-names-transunion-to-best-regarded-companies-of-2018-list/TransUnion (NYSE: TRU) announced today that Forbes has listed the company as one of the Best Regarded Companies of 2018. TransUnion is one of 250 companies recognized worldwide as a result of survey input from more than 15,000 respondents in 60 countries.

Forbes evaluated companies based on four categories: ethical and social conduct, employer reputation, product value, and customer service.

“TransUnion is honored to be recognized by Forbes as one of the Best Regarded Companies of 2018,” said Julie Springer, executive vice president and CMO at TransUnion. “While we operate as a business, we also serve as the door to opportunity for millions of consumers globally who look to us for guidance and the ability to participate in the global economy. This recognition further validates our commitment to use information to benefit consumers and economies around the world. We call that commitment Information for GoodSM.”

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

]]>Thu, 13 Sep 2018 05:00:00 -0500https://content.presspage.com/uploads/1104/500_r112hvcw.jpeg?10000TransUnion Healthcare Announces Support of RIP Medical Debt to Help Consumers Avoid Bankruptcieshttp://newsroom.transunion.com/transunion-healthcare-announces-support-of-rip-medical-debt-to-help-consumers-avoid-bankruptcies/
http://newsroom.transunion.com/transunion-healthcare-announces-support-of-rip-medical-debt-to-help-consumers-avoid-bankruptcies/Medical debt is the number one cause of bankruptcy in the U.S. To help consumers faced with mounting medical bills avoid bankruptcy, TransUnion Healthcare announced today that it is supporting the efforts of RIP Medical Debt, a 501(c)(3) nonprofit located in metropolitan New York, but working nationally. RIP, founded in 2014, has a single mission to help relieve deserving Americans and veterans of medical expenses they are unable to pay.

“Our nonprofit uses donor funds to locate and then purchase unpaid and unpayable medical debt,” said Craig Antico, CEO and co-founder of RIP Medical Debt. “With TransUnion’s support, we can further address the difficult problem of identifying those individuals who are truly charity-worthy and take the next step of actually removing that debt burden.”

RIP Medical Debt will be using TransUnion Healthcare’s financial assessment solution to both evaluate portfolios of debt they own and to locate new medical debt. The nonprofit utilizes credit data for the purpose of purchase and forgiveness of medical debt that meets specific criteria of the donors.

Earlier this year, TransUnion published findings from an analysis that found patients experienced an 11% increase in average out-of-pocket costs during 2017. These costs increased to $1,813 at the conclusion of 2017, compared to $1,630 one year earlier. TransUnion also found that more than half (51%) of patient out-of-pocket costs per healthcare visit in 2017 were $501 or higher.

“At TransUnion, we pride ourselves on using our data to help both business customers and consumers. Through this partnership, RIP Medical Debt will be able to more accurately and efficiently identify those who truly need help with medical debt,” said Dave Wojczynski, president of TransUnion Healthcare.

“This partnership provides a responsible and socially-conscious solution for the medical and collections industry who want to relieve people of unpayable bills in a fashion that does not entail tax consequences for the recipient. That we can forgive debt for as little as a penny on the dollar also ensures that our supporters get the greatest effective use of their donations,” added Jerry Ashton, RIP Medical Debt co-founder and EVP.

RIP Medical Debt locates, buys and forgives medical debt across America, the only industrialized nation on earth with personal medical debt. We work on behalf of individual donors, philanthropists and organizations who provide financial relief for people burdened by unpaid and unpayable medical bills. A special focus is forgiving the medical debt of U.S. veterans and military troops. www.ripmedicaldebt.org

About TransUnion Healthcare

TransUnion Healthcare, a wholly owned subsidiary of credit and information management company TransUnion, is a trusted provider of Revenue ProtectionTM solutions that help providers collect more cash up front and throughout the revenue cycle, and identify and maximize reimbursement opportunities to reduce bad debt. By leveraging our data assets, market-leading revenue cycle management technologies, and deep insights into consumer financial behavior, our customers are better enabled to reduce uncompensated care, engage patients early and improve cash flow. www.transunionhealthcare.com

About TransUnion (NYSE:TRU)

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

]]>Wed, 12 Sep 2018 05:00:00 -0500https://content.presspage.com/uploads/1104/500_228175963.jpg?10000TransUnion to Present at Barclays 2018 Global Financial Services Conferencehttp://newsroom.transunion.com/transunion-to-present-at-barclays-2018-global-financial-services-conference/
http://newsroom.transunion.com/transunion-to-present-at-barclays-2018-global-financial-services-conference/TransUnion (NYSE: TRU) today announced that Jim Peck, President and CEO, will present at the Barclays 2018 Global Financial Services Conference on Thursday, September 13, 2018. The presentation is scheduled to begin at 7:15 a.m. CST (8:15 a.m. EST). A live webcast of the presentation will be made available at the TransUnion Investor Relations website at http://www.transunion.com/tru. A replay will be available on the company’s website following the conclusion of the presentation.

About TransUnion

TransUnion is a leading global risk and information solutions provider to businesses and consumers. The company provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. Businesses embed its solutions into their process workflows to acquire new customers, assess consumer ability to pay for services, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud. Consumers use its solutions to view their credit profiles and access analytical tools that help them understand and manage their personal information and take precautions against identity theft. www.transunion.com

]]>TRUThu, 06 Sep 2018 05:50:00 -0500https://content.presspage.com/uploads/1104/500_162876539.jpg?10000Fraud: The New Operational Headache in Property Managementhttp://newsroom.transunion.com/fraud-the-new-operational-headache-in-property-management/
http://newsroom.transunion.com/fraud-the-new-operational-headache-in-property-management/An independent consulting study commissioned by TransUnion explores the impact of fraud in the single and multi-family rental industryA newly released Forrester Consulting study found that the majority of property management companies have been affected by fraud, but due to the emerging nature of the problem, they are not well equipped to manage the issue. The emergence of fraud in this industry is clear as the study found that more than eight out of 10 decision makers at property management companies have experienced fraud up to 20 times within the past two years.

To take a closer look at this growing problem, TransUnion commissioned Forrester to conduct the August 2018 study that explored fraud in the single and multi-family rental industry. The research study, titled, “Misunderstanding and Inconsistency: The State of Fraud in the Rental Housing Industry,” is available for download today. Rental industry executives can also register for TransUnion’s Property Management Summit to learn more about this research.

In this study, Forrester conducted an online survey of 153 multi-family and single-family property management organizations in the U.S. to evaluate fraud in the rental industry. Survey participants included decision makers in the organizations and was completed in August 2018.

“Working closely with property management companies for the last few decades, it was apparent to us that the prevalence of fraud was rising in the rental industry. The Forrester study confirms this,” said Mike Doherty, senior vice president in TransUnion’s rental screening business. “In the last two years, virtually all of the property managers surveyed have experienced fraud, and the research highlights that this is a costly problem from both a fiscal and reputational standpoint.”

The study found that the advent of online rental applications is a primary driver for the fraud that exists in the rental housing industry today. Online applications are now outpacing those that are submitted in-person, with nearly 59% of applications taking place online. As a result, more than half of property management companies surveyed identify online applicant-based fraud as a critical or near-critical issue.

To what extent is applicant-based fraud an issue for your company?

Method

4

5-Critical Issue

Online

34%

22%

In-person

22%

10%

*Rated on a scale of 1 to 5 (1= not an issue to 5= critical issue). Base: 153 asset management decision-makers at US residential real estate/property management companies.

Identifying the Types of Fraud in the Rental Industry

To mitigate fraud risk in the rental industry, property managers must be aware of the key forms of fraud taking place – synthetic fraud, digital fraud and true name fraud.

Synthetic fraud has become a new weapon of choice for sophisticated fraudsters in which the “applicant” is nothing more than a manufactured identity. In the rental industry, these fraudulent identities are used during the application process, and if approved, the fraudster now has access to an address for the purpose of establishing credit. While the fraudster is running up high balances or maxing out credit cards under this false identity, property managers are left with a resident that does not exist. As a result, property managers are unable to collect rent.

Digital fraud is also increasing due to the use of manufactured identities. Often, these backroom operations are running a variety of IDs and credit cards to find a potential “match.” Spoofed IP addresses are used to indicate the applicant is local, even if the operation is taking place across the country. Unless sophisticated technology is in place to flag suspicious information as part of the verification process, the fraud may not be realized until months after approval.

True name fraud is another problem facing the rental industry and occurs when a victim’s personal information is fraudulently used in an application. Fraudsters may obtain pieces of information such as a name, date of birth or social security number in hopes of getting an application approved. If the property management company is unable to flag these inaccuracies at the time of application, the fraudster may succeed in getting approved as a tenant while the victim is on the hook for an apartment they never applied for.

“In all of these cases of fraud, a property manager will find that the resident they may try to evict does not actually exist or is not the person in their rental unit. As a result, the property management company can lose thousands of dollars of potential income and impact their hard-earned reputation,” added Doherty.

Catch the Fraudsters Early, or Pay the Price

In the study, 95% of property managers admitted to experiencing difficulties identifying, mitigating or preventing fraud. A significant problem that was acknowledged was the timeframe in which the incidence of fraud was first recognized. Three out of four property managers identified fraud after move-in, with more than one-quarter discovering the fraud much later into their lease – seven months or later.

“Skipped” rent payments are usually what tips off property managers that a fraudulent issue is at hand. According to the study, turnover occurs during the lease cycle, costing property managers thousands of dollars.

This can quickly become an expensive problem as TransUnion’s ResidentCredit has found that the average eviction or skip balance owed is approximately $4,215. It can take anywhere from 90-150 days to evict a tenant, and additional expenses such as lost rent, back rent, and leasing and marketing costs can also pile up.

Discovering Fraud and Preventing it in the Future – Keeping up with the Sophistication of Fraudsters

A common misconception surrounding fraud prevention is the distinction between applicant screening and fraud mitigation. About 55% of property managers indicated that background checks were what triggered a fraud alert.

However, conducting a background check is not the same as applying fraud detection before move-in. It was also noted that many property managers assumed that a driver’s license scan was an effective fraud prevention measure; however, this tactic does not protect against the full scope of fraud that is prevalent today.

“Many property managers do not realize that true fraud mitigation should take multiple factors into account for a comprehensive solution,” said Doherty. “Property managers are in need of better technology so they may flag fraud at the first warning sign. Once they are more effective in getting the right renters, they will reduce the involuntary turnover cost, impact to reputation and become more cost efficient.”

Study participants seem to understand this. Nearly all (94%) of property management decision-makers surveyed believe there will be severe implications to not investing in a fraud technology solution.

“With fraud proliferating in the rental industry, property owners and managers can only keep up by radically transforming their approach to preventing and managing rental fraud,” concluded Doherty.

Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

]]>TUnews,Fraud,Rental ScreeningWed, 05 Sep 2018 08:00:00 -0500https://content.presspage.com/uploads/1104/500_116961809.jpg?10000TransUnion to Present at Barclays 2018 European Business Services Forumhttp://newsroom.transunion.com/transunion-to-present-at-barclays-2018-european-business-services-forum/
http://newsroom.transunion.com/transunion-to-present-at-barclays-2018-european-business-services-forum/TransUnion (NYSE: TRU) announced that Todd Cello, CFO, and David Neenan, President International, will present today at the Barclays 2018 European Business Services Forum. A copy of the presentation materials are available at the TransUnion Investor Relations website at http://www.transunion.com/tru.

About TransUnion

TransUnion is a leading global risk and information solutions provider to businesses and consumers. The company provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. Businesses embed its solutions into their process workflows to acquire new customers, assess consumer ability to pay for services, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud. Consumers use its solutions to view their credit profiles and access analytical tools that help them understand and manage their personal information and take precautions against identity theft. www.transunion.com